Modi govt to ban cheque books to boost digital transactions?


Daijiworld Media Network

New Delhi, Nov 21: Modi government which is mooting for a cashless society may next ban cheque books to boost digital transaction, reports suggest.

This was indicated by a senior functionary of a prominent trade body. "In all probability, the Centre may withdraw the cheque book facility in the near future to encourage digital transactions," said Praveen Khandelwal, secretary general of Confederation of All India Traders (CAIT).

Talking to the reporters at the launch of 'Digital Rath', a joint initiative of the CAIT and Mastercard, Khandelwal said the government needs to encourage the use of debit and credit cards, "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 percent on payments through debit and 2 percent through credit cards. The government needs to incentivise this process by providing subsidy directly to the banks so these charges can be waived."

If the government proceeds with the move of banning cheque books, it could be a big disruption for Indians, similar to the demonetisation. According to experts, 95 percent of the transactions currently take place via cash or cheques.

Cheques are fairly popular in SME payments. By taking a PDC (post-dated cheque) against the delivery of goods, a supplier secures payments due in future from its customer. People pay by cheques while buying land and house. Many landloards prefer their tenants pay rent via cheque. Even for retail and commercial payments, people usually pay via cheque incase of large-value payments.

Following demonetisation, digital wallets, quick response (QR) codes, near field communication (NFC) technology, sound wave systems, virtual cards, unified payment interface (UPI) and Aadhaar Pay have been encouraged to push cashless transactions.

However, in spite of 80-crore ATM-cum-debit cards only 5 percent use the debit cards for cashless transaction. The rest 95 percent use it for cash withdrawals, says Khadelwal.

Digital transactions have shown mixed trends after demonetisation, but overall cashless payments are much higher than in the pre-demonetisation months.

While cash in circulation at Rs 16.3 lac crore is still at 91% of the pre-note ban days of Rs 17.9 lac crore, digital transactions rose 31% from November last year to September this year, according to provisional RBI data. Digital transactions in September reached 877 million, down from the peak of almost 1 billion in December last year.

However, to meet the government’s goal of 25 billion digital payments by end of this financial year, cheque books could be the next target.

  

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Comment on this article

  • SHIHAB, mangalore

    Thu, Nov 23 2017

    Be aware of hacker . and what about if server issue so trading will stop until server resolved?

    DisAgree Agree Reply Report Abuse

  • Jd, Mangalore

    Thu, Nov 23 2017

    This will be the ultimate blow, to economy, people and country. Barter systems back into trading.

    DisAgree Agree Reply Report Abuse

  • John Tauro, M'luru / Kwt

    Wed, Nov 22 2017

    For what reason cheques should be banned? Payments through cheques and drafts are the most popular, transparent and cashless forms of payment not only in India, but throughout the world. Where are we heading?

    DisAgree Agree [5] Reply Report Abuse

  • Real Mangalorean, Mangalore/Dubai

    Wed, Nov 22 2017

    Ee jana Indian economy'n lagadi detth de popundu tojodu..

    DisAgree Agree [8] Reply Report Abuse

  • Flavian, Mangaluru/Kuwait

    Wed, Nov 22 2017

    jeevan, Mangalore

    Another blow on your already troubled buisness. ?

    DisAgree Agree [5] Reply Report Abuse

  • Rudolf Rodrigues, Mumbai

    Wed, Nov 22 2017

    In a country with so much of illiteracy n poverty, with many not having access to two square meals what sort of utterly foolish idea is this!!

    Digital payments have a big drawback too as ignorant, innocent, gullible citizens can be looted of their entire savings by crooks in connivance with corrupt bankers by using innovative ideas from convincing to threatening into parting of banking details, many sr citizens r already being cheated by crooks using innovative techniques!!

    DisAgree Agree [4] Reply Report Abuse

  • L n T, Mumbai

    Wed, Nov 22 2017

    Achche din
    Desh Badal raha hei
    Subka Saath Vikas
    All in ban ban ban no other developments
    Cheques ban notes ban yummy tasty food ban

    DisAgree [1] Agree [6] Reply Report Abuse

  • Flavian, Mangaluru/Kuwait

    Wed, Nov 22 2017

    Onjila artha aapuji swami !
    Old folks are facing big challenges with modern hi-fi system, digital world etc.
    Cash less economy to check less settlements.
    Save the trains going track less.

    DisAgree Agree [3] Reply Report Abuse

  • Peter, KSA

    Wed, Nov 22 2017

    One more 'popikaala' experiment and then changes, U turns and then hiding in rat hole without reporting to Parliament session. God only can save us from these brainless leaders.

    DisAgree Agree [5] Reply Report Abuse

  • Flavian dsouza, chik/bengaluru

    Wed, Nov 22 2017

    just distractions and unneccsary media attention ..focus should be on job creation , gdp , sme growth , governanace

    DisAgree Agree [2] Reply Report Abuse

  • NISHAR, Mangalore / KUWAIT

    Wed, Nov 22 2017

    Bro, You seems confused about "not having the wife" and "abandoning wife".

    DisAgree [1] Agree [6] Reply Report Abuse

  • kas, Mangalore

    Wed, Nov 22 2017

    Pls go and verify the affidavits filed by MODI in Gujrat assembly elections ...
    You will find that he is unmarried .... Such liers are fit to be our PM...

    DisAgree [1] Agree [9] Reply Report Abuse

  • NISHAR, Mangalore / KUWAIT

    Wed, Nov 22 2017

    Yaar....Kuch bhi ho, Paise peise ki roop hi acha lagta hai.. Daily wage ya monthly, mehnath ke baad hath me aata hai to maja aata hai.. Waise kar kya rehe ho modi, aajkal note ke bhi rang badaldi.??

    DisAgree [1] Agree [3] Reply Report Abuse

  • Dinesh, Dubai

    Wed, Nov 22 2017

    this is another way of creating chaos in the mind of Gujrath voters but khangis plan will not work.

    DisAgree [11] Agree [2] Reply Report Abuse

  • Flavian dsouza, chik/bengaluru

    Wed, Nov 22 2017

    Govt should lead by example .Its the govt which makes maximum use of checks and DD. Even income tax refundsa are in checks, go to pay any taxes and say you will do digital transfers they dont accept

    DisAgree Agree [11] Reply Report Abuse

  • ABDUL NARAYAN DSOUZA, MUMBAI+KARNATAKA+MANGALORE

    Wed, Nov 22 2017

    WHO IS MODI..??

    DisAgree [4] Agree [41] Reply Report Abuse

  • NISHAR, Mangalore / KUWAIT

    Wed, Nov 22 2017

    FATHER OF VIKAS,

    DisAgree [10] Agree [15] Reply Report Abuse

  • kas, Mangalore

    Wed, Nov 22 2017

    He dont have a wife....How he can become the father VIKAS.
    Mangana kaiyelli manikya.
    Best of luck to those who are making bow, bow .....

    DisAgree [5] Agree [19] Reply Report Abuse

  • Peter, KSA

    Wed, Nov 22 2017

    I HEARD HE HAS ABANDONED HIS WIFE. THEN WHO IS THIS VIKAS ?

    DisAgree Agree [6] Reply Report Abuse

  • S. D'sa, Mangalore

    Wed, Nov 22 2017

    Forget about cheque books there are so many people who do not know a b c d and not even stepped into schools , and i have seen these type of people many times in banks struggling to fill slips etc i just cant imagine after banning cheque books where these people stand!!!

    DisAgree Agree [33] Reply Report Abuse

  • Sujaya, Calcutta/New Zealand

    Wed, Nov 22 2017

    Government is voted not to ban everything first! Your first and foremost duty was to do sabka Sath sabka vikas. Instead of creating the promised job slots for young India, their dreams have been destroyed and used them to become blindfolded and communal. Parents have lost hope and children have lost their way. At least if the government has failed to create sufficient space for employment generation, please stay away from destroying the small available resources. Even a movie ban can bring how much disaster who earn their daily wages from these?? what about them?? Its easy to ban ban ban. But who will compensate and fix the gap?? How many of these Groups have come to streets when girls are mistreated on their way to college, molested, raped ?? How many groups come to streets when there is no basic necessities available for the villages?? Its time for the masses to wake up and do the correction before its too late.

    DisAgree Agree [31] Reply Report Abuse

  • J.F.D SOUZA, Attavar, Mangalore

    Wed, Nov 22 2017

    Banning everything keeping quiet is the best remedy. Who is giving such tips to Modi Govt.?

    DisAgree [1] Agree [35] Reply Report Abuse

  • Praveen, Mangalorean

    Wed, Nov 22 2017

    To save tree ... but it'll trouble some Indians... bad move to boost Digital Transactions....

    DisAgree Agree [1] Reply Report Abuse

  • Rakesh, Mangalore

    Wed, Nov 22 2017

    BAN both Chaiwala FEKU and his circuit DAKU from India. At least this will save India from further damage to its development and economy and torture to citizens with their brainless trial and error ideas.

    Brainless idiots are playing with India Economy and citizens. only time will tell the volume of high level scams of this U turn Govt.

    Bhakts say UPA was Corrupt and full of Scams. But the Country knows the Good deeds of BJP Govt in Yeddi, DVS, Shetter regime.!!

    DisAgree [7] Agree [36] Reply Report Abuse

  • Mushtaq Paniyadi, Udupi, Dubai

    Wed, Nov 22 2017

    "Modi government which is mooting for a cashless society may next ban cheque books to boost digital transaction, reports suggest. This was indicated by a senior functionary of a prominent trade body. "In all probability, the Centre may withdraw the cheque book facility in the near future to encourage digital transactions," said Praveen Khandelwal, secretary general of Confederation of All India Traders (CAIT)."

    Are these peoples Crazy, does these peoples know the illiterate rate of India, if cheque book is withdraw and cancelled what will the poor peoples do how they are able to use Mastercard or Visa Card. it is some thing Nonsense.

    Please Insted of all those things create some jobs & opportunities, Open some Industries, , this digital online system will eat some more jobs who will be working in Banks, Guys open your eyes what are you doing this .....

    Jai Karnataka.........
    Jai Hind........................
    Sare Jahan se Acha Hindustan Hamare...........

    DisAgree [3] Agree [20] Reply Report Abuse

  • Prasad, Surathkal

    Wed, Nov 22 2017

    This is not possible. Check is the only instrument available now where u can put a future date. We dont have any equivalent of that in Digital world. Unless some one develops that kind of a product it is not possible to ban check. Say I have purchased RS100 worth of goods from supplier but he will deliver it only after 2 days - then I can give post dated check to supplier.If I dont receive the goods I can request my bank to dishonour or ask supplier to return. This is not possible in digital world.Only way is I can schedule a money transfer after 2 days - for that I should open my internet banking infront of supplier and show him. Also check has some legal protection /

    DisAgree [1] Agree [26] Reply Report Abuse

  • Gilbert, Udupi/Kuwait

    Wed, Nov 22 2017

    Cheque book ban is another disaster like demonetisation. Most of the business transactions as well as personal dealings are through cheques. Its really a Tsunami and most of the people will suffer and business will be affected. India require first basic infrastructure for the citizens like compulsory minimum education, affordable health care, housing and job for its citizens to survive day to day life. Once all citizens have these facilities next step is digital transactions or whatever new electronically. Let Modiji provide these required facilities first and then think of digital or bullet train or digital tea stall.

    DisAgree Agree [20] Reply Report Abuse

  • Rathan, Mangalore

    Wed, Nov 22 2017

    Very strange
    Govt never said that they r going to ban cheques
    It is just opinion of that particular person who is trying to sell his cards
    Why ppl r commenting ? Is that person is Govt spokesperson or RBI person

    DisAgree [24] Agree [4] Reply Report Abuse

  • Peter, KSA

    Wed, Nov 22 2017

    Anything is possible under brainless government.

    DisAgree Agree [4] Reply Report Abuse

  • Pinto, BLR

    Tue, Nov 21 2017

    This news item made my day. Can't stop laughing on these crazy ideas....

    This will benefit only banks (bank charges) & government (GST on bank charges) due to forced digital transactions. How can remote/village/illiterate Indian population deal with day to day transactions ? No knowledge, no net, no mobile & no power !!! Back to stone age.

    Good news is no more bounced cheques !!! Traders, borrowers from money lenders & loan sharks need not worry. Courts burden also gets reduced. If everything is digital no need of bank staff. Shut all banks. Go to atm, cash deposit, withdraw & open account online at atm with aadhar. Everything is Digi - Tollu. What an idea sir ji ...

    Even developed countries cheques are not banned. May be usage reduced. They have given option to customers. We are trying to move faster than hyper loop despite being on the ground still.

    Use constructive & inclusive way for all to move forward. Not one step ahead & 2 steps back. Need of the hour is either eliminate or reduce bank charges to bare minimum to incentivise digital transactions. Also allow only "net interest income" (Interest earned on loans - Interest given on deposits) positive banks to survive & not those survive on "bank charges".

    DisAgree Agree [11] Reply Report Abuse

  • Amith, USA

    Tue, Nov 21 2017

    GOOD!!!!GOOD!!!! Gold Coins, Silver Coins, LEATHER Currency and TUGLAQ also, will come back!!!!!

    DisAgree [5] Agree [43] Reply Report Abuse

  • Amith, USA

    Tue, Nov 21 2017

    If it is so " POPINA KAALA "

    DisAgree [1] Agree [18] Reply Report Abuse

  • Lambrt, Mangalore

    Tue, Nov 21 2017

    After banning cheques in near future, RBI will be counting cheque books and leaves that transacted. They have not finished checking demonetisation period as of now.

    DisAgree Agree [14] Reply Report Abuse

  • Ravi, Blre

    Tue, Nov 21 2017

    Plz. Modi followers open your eyez. Protest this move.tooo much. Modi shows clearly , fit to sell tea. Not as pm . He already njoyed NrI. Tours. He dnt bother abt cimmon people. its time to decide citizen to showmodi way back to gujarath to do fekugiri

    DisAgree Agree [15] Reply Report Abuse

  • ABDUL RAFIQ, Uchila

    Tue, Nov 21 2017

    The days are not far the Modi govt is going to ban breakfast, lunch, dinner, breathing etc. If cheque books banned, no need to keep the Bank open for the public and ATM or online transactions will serve the people. In future he may going to shut all the schools & colleges and force the students to study online under digital India scheme. He promised 2 Crore jobs per year but all his policies making the people jobless. God save India from this uneducated PM.

    DisAgree Agree [21] Reply Report Abuse

  • shan, dubai

    Tue, Nov 21 2017

    I visited so many countries. I worked most advance banks..... Banning cheque books is new to me and never heard yet...... lets see how it will work. May be it is big revolution or big disaster for Indian Economy.

    DisAgree [1] Agree [77] Reply Report Abuse

  • Ravindra, Mangalore

    Tue, Nov 21 2017

    Many European countries no longer use cheques.

    DisAgree [70] Agree [7] Reply Report Abuse

  • Feku, Pilar

    Tue, Nov 21 2017

    Did you ever visit Europe?

    DisAgree Agree [26] Reply Report Abuse

  • Swamy, Mangalore

    Tue, Nov 21 2017

    Cheques have thier unique place in financial world and very much in use in European and western countries. Cheques are as good as digital transactions and should be allowed to use by this govt as an alternate and In some instances of transactions.

    DisAgree Agree [19] Reply Report Abuse

  • Chethan, Kinnigoly

    Tue, Nov 21 2017

    Without cheque..,my God...,please guide this bjp government how to run government..

    DisAgree [1] Agree [22] Reply Report Abuse

  • Francis Dsouza, Goa/KSA

    Wed, Nov 22 2017

    I heard first time that many countries no longer use cheque and particularly Many European countries no longer use cheques. Even Letter of Credit still in use. "Mangana Kaiyalli Manikya Kotta Hage" Indian Government is given to such a person to rule who does not know anything to run a country.

    DisAgree [1] Agree [15] Reply Report Abuse

  • Rampanna, Udupi

    Wed, Nov 22 2017

    Which "advanced" countries are you talking of? Of course, almost all banks still have cheque book system in place, but hardly anyone uses it. Both corporate and Governments use EFT everywhere to make payments. I myself have worked in both banking and non-banking sector in four different countries over the last 15 years.

    In the UK/Europe/Australian context, what I have seen is that only those companies which are absolutely stretched with their cash flows issues cheques because it gives them that one extra day breathing space compared to EFT system.

    In Dubai the story was bit different when I was working. Lot of suppliers used to secure a post-dated-cheque from their business customers as dishonoring a cheque was a criminal offence.

    DisAgree Agree [11] Reply Report Abuse

  • Ravindra, Mangalore

    Wed, Nov 22 2017

    North European countries like Denmark, Norway, Finland etc. don't use cheques anymore. In Germany & Netherlands, I think it is allowed to use, but I have never seen people use it.

    DisAgree [12] Agree [1] Reply Report Abuse

  • ad, mangaluru

    Tue, Nov 21 2017

    Can Modi convert into Money-less economy. He doesn't have to spend a paisa at all for all schemes.
    Go barter Modi, eliminate taxes.

    DisAgree [2] Agree [55] Reply Report Abuse

  • vivek, hirebyle / abu dhabi

    Tue, Nov 21 2017

    Good decision to Fracture economy.....trail and error approach ...hats up!!.....
    any right or wrong step with such a large economy will not show its effect immediately!!.....good and bad side of Note ban and G. S. T effect will show only after start of first quarter of third year ....means start of 2019...

    DisAgree [3] Agree [33] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Tue, Nov 21 2017

    First we need to ban Tuglaq ...

    DisAgree [2] Agree [64] Reply Report Abuse

  • Ramesh, Mangalore/Dubai

    Tue, Nov 21 2017

    No cheque books means no need of banks. Barter system is much better and safe. We are going back to stone age.

    DisAgree [1] Agree [75] Reply Report Abuse

  • John Felix Dsouza, Mangalore

    Tue, Nov 21 2017

    It is very strange without proper infrastructure the Govt wants ban cheques.
    In Mangalore they started online payment of stamp duty before registration. For that purchaser has to buy a DD for the whole amount on SBI and give it prior to registration day, if it is other banks it needed 2 days. For me in August it happened that the customer brought the DD and it was submitted, but the next day we came to know that the system is not working. then they reverted back to old system, then they told why you brought single DD. You should bring Stamp duty DD separate and Registration expenses DD separate. We have to go back to bank and change the the DD amount into 2 DD's. What madness. These are the implementation woos of our Governments.

    DisAgree [1] Agree [45] Reply Report Abuse

  • Swamy, Mangalore

    Tue, Nov 21 2017

    This whole system in India is meaningless. First you pay in thousands to obtain a stamp paper then again you pay tax separately for any transactions. Does this make any sense?????...

    DisAgree Agree [42] Reply Report Abuse

  • Rathan, Mangalore

    Wed, Nov 22 2017

    Swamy who introduced the above system ?

    DisAgree [6] Agree [1] Reply Report Abuse

  • Marian D'Souza, Falnir Mangalore

    Tue, Nov 21 2017

    After beef ban, came note ban and cash ban, Then love ban, Padmavathi ban, jeans ban, and now cheque ban. Wonder what next. This is a regime of only bans.

    DisAgree [5] Agree [88] Reply Report Abuse

  • Albert, Mangalore

    Tue, Nov 21 2017

    Next in the list..Pappu ban!

    DisAgree [61] Agree [4] Reply Report Abuse

  • Jacob Mendonsa, Bangalore

    Tue, Nov 21 2017

    After that Feku Ban for ever!

    DisAgree [2] Agree [59] Reply Report Abuse

  • Tony, Mangalore

    Wed, Nov 22 2017

    Next will be living ban . All problems will cease.

    DisAgree Agree [13] Reply Report Abuse

  • basmiy, Bangalore

    Tue, Nov 21 2017

    And the last one is Ban Modi Govt.

    DisAgree [3] Agree [86] Reply Report Abuse

  • vishnu bhat, Bangalore

    Tue, Nov 21 2017

    Utterly nonsensical idea

    DisAgree [3] Agree [63] Reply Report Abuse

  • NM, Mangalore

    Tue, Nov 21 2017

    Dear Modiji,
    Before holding noteban, you should have ensured sufficient alternative currency.
    Atleast before banning non-digital transactions, teach India how to become digital. Give them time and education. If you do things abruptly, the people who voted you will suffer. Always think about the implications before making such big decisions.
    Acche din comes from acche soch and acche soch comes from acche admi. Our country's future lies with your responsibility. Take good care of it.

    DisAgree [1] Agree [28] Reply Report Abuse

  • Mahathma, Mangalore

    Tue, Nov 21 2017

    Great News....good luck india

    DisAgree [58] Agree [9] Reply Report Abuse

  • jeevan, mangalore

    Tue, Nov 21 2017

    Modi is a copy cat, he copies from America, and don't know how to implement, Ur Digital has made common man as a beggar, Stop this digital.

    DisAgree [5] Agree [87] Reply Report Abuse

  • geoffrey, hat hill

    Tue, Nov 21 2017

    Cheques are not banned in the US, only thing is they spell it differently (Check).

    DisAgree Agree [34] Reply Report Abuse

  • Bollu, Mangalore

    Tue, Nov 21 2017

    That means they failed to materialise digital transactions after note ban.So now forcibly they want people to go for digital transactions. Bhakths have supported the monster so far.Once the very monster starts consuming them they will open their eyes.

    DisAgree [1] Agree [53] Reply Report Abuse

  • RUDOLPH, MANGALORE

    Tue, Nov 21 2017

    MORE THAN 70% OF OUR POPULATION LIVING IN VILLAGES AND NOT AWARE/NOT TRAINED FOR DIGITAL TRANSACTION. THIS IS THE HEIGHT OF MADNESS OF MODI GOVT.

    EVERY MOVE OF MODI GOVT TAKING BJP TO SINK SLOWLY AND WILL BE RESULT IN 2019 PARLIAMENT ELECTION

    DisAgree [5] Agree [71] Reply Report Abuse

  • Rajesh, dubai

    Wed, Nov 22 2017

    MORE THAN 70% OF OUR POPULATION LIVING IN VILLAGES AND NOT AWARE/NOT TRAINED FOR DIGITAL TRANSACTION.... Even I think 70% people are not aware of Banking system i.e. cheque book etc..... Now this Government will teach them Cash less, cheque book less, food less...... everything digital i.e. without cheque book all digital ....... without money they have press some buttons and thy will get food.

    DisAgree [4] Agree [3] Reply Report Abuse

  • ABDUL NARAYAN DSOUZA, MUMBAI+KARNATAKA+MANGALORE

    Wed, Nov 22 2017

    without money they have press some buttons and thy will get food....'' WITHOUT DOING ANYTHING GET CHILDRENS'' SAY MODI KI JAI

    DisAgree Agree [2] Reply Report Abuse

  • David Pais, Mangalore

    Tue, Nov 21 2017

    sociology people don't know what is digital. keep sufficient cash 4 transactions. v don't want barter system. no chequebooks, no banks.

    DisAgree [3] Agree [39] Reply Report Abuse

  • Eric Coelho, Mangalore

    Tue, Nov 21 2017

    How can he forcefully implement something without the approval of the people. Demonetisation has demolished his idea, GST which he criticised to the core has completely failed and now this digital transaction which will also fail and buried completely.

    DisAgree [5] Agree [60] Reply Report Abuse

  • Prem, Kudla

    Tue, Nov 21 2017

    Dear bhakthon.
    Seems achhe din ayenge.if modi bans cheques.buisness is going to hit floors. Gdp will be ground levevl flat. It vll b disastor....modi bhatks open ur eyes.its stupid idea ban cheques

    DisAgree [5] Agree [84] Reply Report Abuse

  • kumara, bengaluru

    Wed, Nov 22 2017

    dear slaves, please read the news properly, this statement is by somebody else and not from the govt. sources,,,

    DisAgree [15] Agree [1] Reply Report Abuse


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