Similarities:
| S.no. | Points of Similarity | PSS Act (2007) and NI Act (1881) |
| 1 | Regulation of Financial Instruments | Both acts deal with financial instruments and aim to regulate their use in the Indian financial system. |
| 2 | Facilitating Payments | Both facilitate smooth and secure payment systems in the economy, ensuring trust and reliability in financial transactions. |
| 3 | Legal Framework | Each provides a legal framework for handling disputes and issues arising from financial transactions and instruments. |
| 4 | Promote Trust and Confidence | Both acts aim to promote trust and confidence in the financial system by providing clear regulations and legal frameworks for payment and transaction processes. |
| 5 | Penalties for Non-compliance | They include provisions for penalties to ensure compliance with their respective regulations, thereby promoting adherence to legal standards. |
| 6 | Consumer Protection | Both acts indirectly protect consumers by ensuring the integrity and reliability of payment systems and negotiable instruments. |
| 7 | Facilitate Commerce | By regulating payment systems and negotiable instruments, both acts facilitate commerce and trade, ensuring smooth financial transactions. |
Difference:
| S. No. | Point of Difference | PSS Act (2007) | NI Act (1881) |
| 1 | Enactment | Enacted in the 21st century. | Enacted in the 19th century. |
| 2 | Scope | This act primarily deals with the regulation and supervision of payment systems in India. | This act governs the use of negotiable instruments such as promissory notes, bills of exchange, and cheques. |
| 3 | Objectives | It aims to ensure the safety, security, and efficiency of these systems. | It focuses on the legal aspects of these instruments, including their definition, characteristics, and the procedures for their endorsement, negotiation, and dishonour. |
| 4 | Regulating Authority | The RBI is the main regulatory authority, responsible for overseeing and regulating payment systems. | It is a general law applicable to negotiable instruments and does not specify a particular regulatory authority like the RBI. |
| 5 | Technological focus | This act addresses modern electronic payment systems, including internet banking, mobile payments, and other digital payment methods. | Itprimarily deals with traditional paper-based negotiable instruments, although amendments have been made to accommodate electronic transactions to some extent. |
| 6 | Jurisdiction | The act’s jurisdiction is primarily national, but it also addresses cross-border payment systems if they impact domestic payments. | Focuses on negotiable instruments used within India, with provisions for dealing with instruments drawn or payable outside India. |
| 7 | Role of RBI | The RBI plays a proactive regulatory and supervisory role, issuing guidelines, conducting inspections, and ensuring compliance. | The RBI’s role is more indirect, focusing on implementing specific provisions (e.g., cheque truncation), while legal enforcement is primarily through the judiciary. |
| 8 | Penalties and Dispute Resolution | Specifies penalties for non-compliance with its provisions and provides mechanisms for dispute resolution. | Includes penalties for dishonour of instruments and provides legal recourse through the judiciary. |
by- APARNA SINGH KSHATRIYA