After Demonetisation of old currency notes in India the next move of Narendra Modi’s BJP led Indian government will be to impose cheque book ban in india. What are advantages and disadvantages of banning of Cheque books, cheque leaves in India and how will it affect economic sector of India.
Few months back to increase digital money and cashless transactions in India, demonetisation of 500, 1000 notes was done. There were lakhs of people who complied about this move by Government and it was considered as a failure. Later Government was forced to issue new 2000, 500, 200 notes in India to overcome problems of cash shortage due to demonetisation impact. Now again a news is coming out that Cheque book ban will be imposed in 2018 and the year 2017 will see end of cheque books. When will be last date of using cheques for doing transactions in India is being asked by all common people, businessmen .etc.
News of proposed cheque book ban in india came out at venue of Digital Rath in which General secretary of Confederation of All India Traders (CAIT) told media about it. They pointed out fact that in coming months India will stop using cheque books and cheque leaf facility all together. To overcome such situations all traders should start making use of digital transactions in receiving and making payments.
At present 95% of transactions in India is made through cash and cheques even though digital transactions is being promoted. Around Rs 25,000 crore is spend by Government in printing of new currency notes and Rs 6,000 crore spent for providing security to it. In this manner banks also utilize a huge amount of money for ATM counters at different locations and as maintenance charges for it.
Cheque book ban in India news
Presently Banks deduct service charge for debit and credit card transactions. If use of digital money is promoted more and cheque ban in India is implemented it will help both banks and Government. This will make Government provide subsidy to banks who will in turn avoid service charges on debit, credit card transactions.
Even though digital transactions in India increased in December 2016, January 2017 during demonetization, there are trends showing that it is coming down. As cash availability increased over past several months, people are opting for more cash transactions than digital payments.
Cheque payments of big amounts are done daily without making digital transactions. People collect cheque amount directly from banks as cash without depositing it into their bank accounts. If cheque book ban in India is done it will have a great impact which will increase digital payments. This is the main motive behind banning of cheque leaf payments in India.
Dates of cheque book ban implementing in India is not known at present. It will be announced some time in December 2017 or in January 2018. What will be last date to deposit cheque leaf in bank before it is demonetised.