After the demonetization, central government plan to digital financial system, in its transfer in the direction of a digital financial system could quickly ban cheques, media studies recommend.
The Narendra Modi authorities had in 2016 banned the usage of Rs 500 and Rs 1,000 notes that seized 86 per cent of the money in circulation. The federal government had completed so to maneuver in the direction of a cashless financial system, powered by digitization and will introduce digital financial system
In its newest transfer in the direction of the identical, the federal government could also be planning to ban cheque books. A senior official of the Confederation of All India Merchants, Praveen Khandelwal informed PTI lately that perhaps, the Centre could withdraw the cheque e book facility within the close to future to encourage digital transactions.
Khandelwal, whereas talking on the Digital Rath initiative, that goals to unfold consciousness about digital transactions and digital financial system, additionally mentioned the federal government must incentivise fee via debit and bank cards. “The federal government spends Rs 25,000 crore on printing of forex notes and one other Rs 6,000 crore on their safety and logistics. Furthermore, banks cost 1 per cent on funds via debit and a pair of per cent via bank cards. The federal government must incentivise this course of by offering subsidy on to the banks so these prices might be waived,” he mentioned.
This transfer could trigger extreme inconvenience for merchants, 95 per cent of whose transactions are through cheques and money. Furthermore, for the reason that demonetisation of Rs 500 and Rs 1,000 notes, the usage of cheque books has risen.
Though digital transactions have surged submit demonetisation, information reveals that individuals nonetheless favor to make use of money extra. Khandelwal mentioned solely 5 per cent of the entire 80-crore ATM-cum-debit playing cards are used for digital transactions, whereas 95 per cent of them are used to withdraw money.
In line with Reserve Financial institution of India information, money in circulation was Rs 17.9 lakh crore whereas that submit demonetisation is Rs 16.three lakh crore. Digital transactions rose 31 per cent from November final yr to September this year and it also increase by helping of digital financial system