Abstract: "The new government of Myanmar has proved its intention to have good relations with the international community. Being a member of ASEAN, Myanmar has to prepare the requisite measures to assist in the establishment of the ASEAN Economic Community in 2015. However, the legacy of the socialist era and the tight control on the banking system spurred people on to cash rather than the banking system for daily payment. The level of Myanmar?s banking sector development is further behind the standards of other regional banks. This paper utilizes a descriptive approach as it aims to provide the reader with an understanding of the current payment and settlement system of Myanmar?s financial sector and to recommend some policy issues for consideration. Section 1 introduces general background to the subject matter. Section 2 explains the existing domestic and international payment and settlement systems in use by Myanmar. Section 3 provides description of how the information has been collected and analyzed. Section 4 describes recent banking sector developments and points for further consideration relating to payment and settlement system. And Section 5 concludes with the suggestions and recommendation..."