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No proposal to withdraw cheque book facility, clarifies finance ministry

Some media reports said there is a possibility that the central govt may withdraw bank cheque book facility in the near future, with an intent to encourage digital transactions.

business Updated: Nov 23, 2017 21:26 IST
Press Trust of India
Press Trust of India
Press Trust of India, New Delhi
Cheque book facility,Finance Ministry,Banking sysytem
Visitors walk past a sign for a digital or cashless economy at a Digital Wealth Fair promoting e-payments in Mumbai on January 3, 2017.(AFP File Photo)

The finance ministry on Thursday said there is no proposal to withdraw the bank cheque book facility, which is an integral part of the payments landscape.

The clarification comes in the backdrop of reports in a certain section of media that there is a possibility that the central government may withdraw bank cheque book facility in the near future, with an intent to encourage digital transactions.

This has been denied by the government and reaffirmed that there’s no such proposal, it said in statement.

“The Government of India has reaffirmed that there is NO proposal under consideration to withdraw the bank Cheque Book facility,” the finance ministry said in a tweet.

Post demonetisation, the government has been pushing digital transaction with an aim to move towards less cash society.

The ministry emphasised that while the government is committed to transform India into a less cash economy and promote digital and electronic transactions, “cheques are an integral part of the payments landscape”.

It said cheques form the backbone of trade and commerce, by being negotiable instruments, which often serve as the security for underlying trade transactions.

Finance minister Arun Jaitley, in the budget speech for 2017-18, had said that as the country moves 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”.

First Published: Nov 23, 2017 21:25 IST