15th October, 2018

Cheque-book will not be withdrawn, clarifies government

The banking news was recently ripe with the media-reports that talked about cheque-book withdrawal in near future.

But the news has been denied that there is any proposal under government’s consideration that could withdraw bank cheque book facility.

The clarification in this regard said the Government is committed to transform India into a less-cash economy and promote digital and electronic transactions through multi-pronged initiatives, but cheques are an integral part of the payments landscape, and form the backbone of trade and commerce. It added that cheques are negotiable instruments, which often serve as the security for underlying trade transactions.

Union Minister’s take

The Union Finance Minister, in his Budget Speech 2017-18, had announced, “As we move faster on the path of digital transactions and cheque payments, we need to ensure that the payees of dishonoured cheques are able to realise the payments. Government is therefore considering the option of amending the Negotiable Instruments Act suitably.”