Centre plans to ban cheque books: Another surgical strike after note ban

Centre plans to ban cheque books: Another surgical strike after note ban.

New Delhi, November 22: After the surgical strike of demonetisation on the common people in India, the Union Government under Prime Minister Narendra Modi is planning yet another major move, according to certain media reports.
To enhance digital money transactions, the Centre is planning to ban cheque books.

In a statement, Confederation of All India Traders Secretary-General, Praveen Kandalval had observed that the cheque book system would be banned in the near future.

At present, about 95% of the business, as well as other financial transactions, are through the means of hard cash and cheques.

Even then, the centre is in a progressive mode with this new plan of banning cheques which affect the financial transactions of crores of Indian citizens.

The Centre is encouraging credit and debit card transactions. It is said that the ban might be focussed on diverting people to digital banking.

It is observed that for cashless transactions, only 5% of the existing cards are used. 95% of the debit cardholders use their cards for withdrawing money from their account, according to Confederation of All India Traders Secretary-General, Praveen Kandalval.

All banks including Public Sector Banks in the country have reportedly restricted the distribution of cheque books.

Earlier, banks were giving two cheque books for free in a year. But it was reduced to one recently. Banks had even issued orders that customers need to pay money if they want to get more than one cheque book.

According to experts, this restriction is considered as the first step of banning cheque books.

When there was a scarcity of currency notes after demonetisation, people have depended upon cheques for financial transactions at large.