Narendra Modi government to ban cheque books next?
After the demonetisation of Rs 500 and Rs 1,000 notes, the next thing to be banned by the Narendra Modi-led government, could be cheque books
After the demonetisation of Rs 500 and Rs 1,000 notes, the next thing to be banned by the Narendra Modi-led government, could be cheque books. The measure would serve to further the government's push for digital transactions as a means of reducing corruption and black money levels in the country.
The possibility of the ban was hinted at by Praveen Khandelwal, secretary general of Confederation of All India Traders (CAIT), who in a recent interaction with the media stated, "In all probability, the Centre may withdraw the cheque book facility in the near future to encourage digital transactions."
Khandelwal's statements came at the launch of 'Digital Rath', an even jointly hosted by CAIT and popular payment gateway provider, Mastercard. Speaking at the event, he also said that the government needed to further incentivise digital transactions by ensuring that surcharges levied on such transactions are waived off by banks.
A report in Business Today quotes him as having opined, "The government spends Rs 25,000 crore on printing of currency notes and another Rs 6,000 crore on their security and logistics. Moreover, banks charge 1 per cent on payments through debit and 2 per cent through credit cards. The government needs to incentivise this process by providing subsidy directly to the banks so these charges can be waived."
The cheque book facility remains popularly used across the country. Apart from cash traders and landlords readily accept postdated cheques from their clients to secure their money at a later, more convenient date.
After demonetisation, the centre's 'Digital India' project has received big boosts in the form of increased usage of electronic fund transfer systems, as well as a growth in the popularity of mobile payment platforms such as the BHIM application.
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