law: Payment and Settlement Systems Act, 2007
  23. Settlement and
  
  netting. -
  
  1.  
  
    The
  
  payment obligations and settlement instructions among the system participants
  
  shall be determined in accordance with the gross or netting procedure, as the
  
  case may be, approved by the Reserve Bank while issuing authorisation to a
  
  payment system.
  2.  
  
    Where
  
  the rules providing for the operation of a payment system indicates a procedure
  
  for the distribution of losses between the system participants and the payment
  
  system, such procedure shall have effect notwithstanding anything to the
  
  contrary contained in any other law for the time being in force.
  3.  
  
    A
  
  settlement effected under such procedure shall be final and irrevocable.
  4.  
  
    Where
  
  a system participant is declared by a court of competent jurisdiction as
  
  insolvent or is dissolved or wound up, then notwithstanding anything contained
  
  in the Companies Act, 1956 or the Banking Regulation Act, 1949 or any other law
  
  for the time being in force, the order of adjudication or dissolution or
  
  winding up, as the case may be, shall not affect any settlement that has become
  
  final and irrevocable and the right of the system provider to appropriate any
  
  collaterals contributed by the system participant towards its settlement or
  
  other obligations in accordance with the rules, regulations or bye-laws of such
  
  system provider.
  Explanation.-For the
  
  removal of doubts, it is hereby declared that the settlement, whether gross or
  
  net, referred to in this section is final and irrevocable as soon as the money,
  
  securities, foreign exchange or derivatives or other transactions payable as a result
  
  of such settlement is determined, whether or not such money, securities or
  
  foreign exchange or derivatives or other transactions is actually paid.