New Delhi, November 24: Cheques are not merely a paper but form the backbone of trade and commerce, withdrawing cheque book facility will not only affect the payment landscape but also the common man.
Some media elements showed that there is a possibility that the Central government may withdraw bank cheque book facility in the near future, with intent to encourage digital transactions. It is denied that there is any proposal under consideration of the government to withdraw bank cheque book facility.
In this regard, it is emphasized that while the government is committed to transform India into a less cash economy and promote digital and electronic transactions through multi-pronged initiatives, cheques are an integral part of the payments landscape, and form the backbone of trade and commerce, by being negotiable instruments, which often serve as the security for underlying trade transactions.
In fact, the Union Finance Minister Arun Jaitley, in the 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 dishonored cheques are able to realise the payments. Government is therefore considering the option of amending the Negotiable Instruments Act suitably.”