40 years ago, the first step towards
electronic payment transactions was taken by USA Financial Sector.
Over the years, the USA’s ePayment
system known as ACH
(Automated Clearing House) has grown to handle a huge number of
transactions.
Through the ACH Network funds can be electronically
credited or debited to a checking (Current account in India), savings accounts,
financial institution general ledger account (Inter-Bank transaction in Indian
terminology) or credit to a loan account.
The
ACH Network is a batch processing, store-and-forward system. Transactions are
stored by financial institutions throughout the day and processed at specified
times in a batch mode.
The main disadvantage of Batch Mode
is that the transactions are not done in real-time but done with a lag in time.
Yes, USA Citizens have not yet
enjoyed the joy of Real-Time Payment Systems.
At present, real-time payment systems are
present in 35
countries, and some of those real-time systems are more than 40 years old.
Realizing the benefits of real-time payemnts
system, the USA
Fed has embarked on a mission to introduce real-time financial transactions
to the USA citizens.
The exercise is expected to last for
a few years, as it is a complicated
task to introduce real-time financial transactions to Americans.
A basic version of Real-Time Payment
System functions in USA, under the brand name FEDWIRE.
No comments:
Post a Comment