RBI paper seeks to cut use of cheque books
RBI has proposed charges for individual who continue using cheques as payment mode.
The significant increase in processing fee for institutions is a result of regularly issuing of warrants rather than crediting amount directly to investors account.
RBI set up a panel which concluded that the main hindrance in electrification of payments is banks themselves. Banks demand post-dated cheques from the borrowers.
The post-dated cheque, points that the cheque issuer does not bear any charges for cheque issuing. This proposes the drawer to bear charges when cheque is issued.
“Such charges may be levied on an ad-valorem basis at par with charges applicable in electronic payment systems” said the paper.
The discussion paper comes two months before rolling out of RBI’s cheque truncation system.
RBI announced that every institution making bulk payments should move to direct electronic transfer.
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