New Delhi: The Central Government on Thursday issued a clarification that there is no proposal under consideration to withdraw the bank cheque book facility.
Certain media reports were highlighting the possibility that the Central Government is mulling to withdraw bank cheque book facility in the near future, in a bid to encourage digital transactions.
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The Ministry of Finance, however, denied the same in a tweet.
The Government of India has reaffirmed that there is NO proposal under consideration to withdraw the bank Cheque Book facility.
— Ministry of Finance (@FinMinIndia) November 23, 2017
The Government emphasised that it is committed to transform India into a less cash economy and promote digital and electronic transactions through multi-pronged initiatives, but cheques play an important role in the payment system in the country.
“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,” the Finance Ministry said in an official statement.
The Union Finance Minister Arun Jaitley,earlier in his 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 dishonoured cheques are able to realise the payments. Government is therefore considering the option of amending the Negotiable Instruments Act suitably.”