Similarities: of SimilarityPSS Act (2007) and NI Act (1881)
 1Regulation of Financial InstrumentsBoth acts deal with financial instruments and aim to regulate their use in the Indian financial system.
 2Facilitating PaymentsBoth facilitate smooth and secure payment systems in the economy, ensuring trust and reliability in financial transactions.
 3Legal FrameworkEach provides a legal framework for handling disputes and issues arising from financial transactions and instruments.
 4Promote Trust and ConfidenceBoth acts aim to promote trust and confidence in the financial system by providing clear regulations and legal frameworks for payment and transaction processes.
 5Penalties for Non-complianceThey include provisions for penalties to ensure compliance with their respective regulations, thereby promoting adherence to legal standards.
 6Consumer ProtectionBoth acts indirectly protect consumers by ensuring the integrity and reliability of payment systems and negotiable instruments.
 7Facilitate CommerceBy regulating payment systems and negotiable instruments, both acts facilitate commerce and trade, ensuring smooth financial transactions.


S. No.Point of DifferencePSS Act (2007)NI Act (1881)
1 EnactmentEnacted in the 21st century. Enacted in the 19th century.
2 ScopeThis 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.
 3ObjectivesIt 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.
 4Regulating AuthorityThe 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.
 5Technological focusThis 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.
 6JurisdictionThe 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.
 7Role of RBIThe 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.
 8Penalties and Dispute ResolutionSpecifies 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.


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