The Reserve Bank of India recently issued a discussion paper titled “Disincentivising Usage and Issuance of Cheques”. The paper seeks views of ways to promote the usage ofelectronic transfer of funds by
penalising the usage of cheques. Moneylife Foundation strongly and
unequivocally opposes any move to curtail the use
of cheques through the levy of punitive charges as proposed in the report. India suffers from low penetration of Internet, erratic power situation and low e-literacy even among otherwise literate persons. In that context, penalizing the usage of cheques would cause hardship to the majority of population including senior citizens. Worse, the charges, meant to act as ‘disincentive’ for consumers would only lead to unjust enrichment of banks.
of cheques through the levy of punitive charges as proposed in the report. India suffers from low penetration of Internet, erratic power situation and low e-literacy even among otherwise literate persons. In that context, penalizing the usage of cheques would cause hardship to the majority of population including senior citizens. Worse, the charges, meant to act as ‘disincentive’ for consumers would only lead to unjust enrichment of banks.
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