Cheque books to be banned? Report suggests Modi govt’s next push for digital transactions


Cheque books to be banned? Report suggests Modi govt’s next push for digital transactions

Aimed at encouraging digital transactions and to create a cashless India, the Centre is likely to ban all cheque books.

In yet another controversial and disruptive move – after demonetisation – aimed at encouraging digital transactions and create a cashless India, the Centre is likely to ban all cheque books, a decision that could affect the transaction preferences of millions of people in the country.

News agency Press Trust of India (PTI), in a story dated November 16, has quoted a senior official of a prominent trade body as sayig that the government needs to encourage the use of debit and credit cards.

Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal told PTI, “In all probability, the Centre may withdraw the cheque book facility in the near future to encourage digital transactions.” He was talking to reporters at the launch of ‘Digital Rath’, a joint initiative of the CAIT and Mastercard to encourage traders to adopt different modes of digital transactions and promote cashless economy.

“The government spends Rs 25,000 crore on printing of currency notes and another Rs 6,000 crore on their security and logistics. Moreover, banks charge 1 per cent on payments through debit card and 2 per cent through credit cards. The government needs to incentivise this process by providing subsidy directly to the banks so these charges can be waived,” he said.

Khandelwal claimed only five per cent of the total 80 crore ATM-cum-debit cards are used for cashless transactions, while 95 per cent of them are used for cash withdrawals.


The ban is most likely to affect the trading community as it relies heavily on cheque books. Over 95 per cent transactions occur through cash and cheques.

There is also a possibility that cheque transactions may have increased manifolds ever since demonetisation crippled cash transactions.



  1. Aboilishing Cash and Cheques is an ideotic move if done so just to implement the developed countries obligations. Technology is always not fool proof and is subject to risks and there is no humane in it. Mechanical approach will always wont succeed and it makes us ideot and the value system at stake. There should be controled mixed economy and these governments either congress or BJP is really finding its own culprits in the system and unnecessarily troubling the general public who sincerely pay taxes is the status in india.

  2. It is ruthless approach towards people of india wherein the actions are against the interest of the public domain rather the purpose is not critically examined and just technology cannot make everything perfect and after all it is tool towards information. So far the implementation of policies are to help the cronic capitalist principles and make a select with more money and the others to be poor and to the draught. If implemented there will be serious consequences to the indian economy and will never ever improve the pursuits and ruin the dream india and growth objects of BJP in india.

  3. If the cheques are banned , this will be a second flop after demonetization, also many business communities especially the small and medium have been trying to hang on to their respective businesses with great difficulties in our country where receivables are delayed as such creditors pressurized the business men,as of now, the business men used to hand over a post dated cheuqe to their creditors and have some breathing time to carry on their business. If the cheque facility is abolished many will go out of business. Secondly the big corporates do not have any problem in doing their business electronically,as a result rich will get richer and the poor will become extinct in this country. The third problem is that senior citizens like me ( I am 67 yrs old ) do not know the intercasies of handling the computer. Forth is that there are many hackers in the world any slight oversight in handling the computer one can swipe out the entire balance and over night one will become a beggar. Hope wisdom will prevail upon the government, and India is not ready to take such overnight changes as of now,as 80 percent of people live in small towns and villages, and how many people have the luxury of having a computer in their houses to do day to day on line transactions? . If this chequeless economy is introduced it is like axing our own legs .

  4. After reading above comments, overall not happy with the government decision on ban on cheque usage. Security question need to be addressed seriously. Hackers and scammers come out with new tricks to cheat people. Senior citizen will find it difficult to use digital technology. There are many who cannot sign sign properly. How will they use digital technology?

  5. Another step to harass SENIOR CITIZENs like me (I am 81 years old) Modi expects me to become DIDITAL SAVVY at this age!!!!!!
    First Interest on FDRS cut from 12&% to 7 %
    Adhaar cards to be related all bank accounts.
    Above for Mobile phones.
    NOw cheque books withdrawal.
    Shortly aLL ACCOUNTS WILL BE FROZEN so that there is no transaction thery by NO CORRUPtion and only banks will have money.
    SUrely BJP lost a firm beleiver in the party. Who knowy may force me back to CONGRESS!!!

  6. This step will increase hardships of senior citizens.Govt.should avoid such action or it will lose next election in 2019

  7. I really appreciate Government move to ban cheque books, by which unrecognized lending money will stop no suicide case, every transaction run through bank. No credit in flow out flow , no court case also i request govt to provide traders loan through bank to run their enterprises.

  8. Yes Agreed, banning cheque books may not be a good solution at this point in time , although it has one of the greatest advantage of ‘ Intentional Cheque Bouncing’ will the thing of past. I just read yesterday in Daily Sakal, people have given fake cheques to Chief Ministers Fund & got publicity. All this nonsense would stop once the destination happen. Also the load on court cases on account of cheque bouncing & default would vanish.

  9. Is it you…. or the Fin. Min…who is to be believed…??
    Coz… recently he stated that cheque books will stay..
    N the present government…no matter how pompous…will try avoiding political mistakes now…at least when 2019 is nearby.

  10. Still people are charging 2% extra when people pay bill using credit card or debit card. So, first govt should ensure these things then only India wll move frwd cashless transaction..

  11. if govt. bans cheque books thn this would be disastrous for modi govt. and we’ll be seeing rahul gandhi as our next pm, then modi govt. will not b able to win and form govt. for second time…

  12. But banker has charging Rs.6 on IMPS and Rs.3 on NEFT just of Rs. 1k transfer, how it is promote digital India ,
    Digital India is concept is very good but not implementation is toooooooo low

  13. In my opinion, Govt’s vision has been aligned only with creamy layer of the society in India. Not bothered about the middle class and senior citizens difficulties. Economy runs at each and every layer in Society.

    How many persons in India knows on-line transactions?
    How many people have access to net & know net applications?

    In a country where fake callers (showing that they are calling from Bank) make millions every day (cause people share their vital data info on phone)- how do one believe that the fellowmen of India will be tech saavy and do digital transactions. Aadhaar card linking is also a big risk- No one tells that I take responsibilities for non-leakage of the vital data (Banker wash their hands first on security queries).

    Govt knows about all these fake callers- sitting silent, bankers are just passing the buck organizations, poor ignorant people loose money every day.

    Only advisers to this Govt can explain these realities. Do they have that much paraphernalia to catch such fraud?

    I don’t think Govt spends on cheque transactions- Bankers charge money for each cheques leaves from customers.

    GOVT IS PROBABLY IN SHORT SIGHT ONCE AGAIN- taking decision to stop the cheque transactions in haste (without proper planning- as they did in demonetization). Bankers looted the country and Govt is aware of such bad events.

  14. Let us stabilz the digitisation transaction with perfection and easiness for common public after demonization era then govt should think of implemation of new scheme

  15. 1) Account holders pay for every single cheque leaf either directly as in PSU banks or indirectly in Private banks where one has to keep a high minimum balance. If private banks are not complaining then there is no loss to anybody. Besides this is money moving from one bank to another bank. Where is the problem for the government then?
    2) Paper trail is the safest, no hacking, no account hijacking, no breaking into accounts electronically; in which case would the banks immediately reimburse the customer for any loss? They won’t.
    3) Have pity on old people who would be simply drained doing electronic transactions – remember old age makes their vision weak and hands shaky!!

  16. The Govt is trying to loot the common man by this act of banning cheques. The Banks charge heavily for NEFT or IMPS transactions and this will have to be borne by the remitter. The cheque facilitates recording of instrument of transaction which is convenient and does not call for any charges. The Govt has already troubled very much the common man and this act will only multiply the difficulties. Ye he ACHEE DIN !!!!

  17. This is a backward step and needs to be looked into without greater depth.
    However, I find that there is no authentic authority that has been quoted for this news item.

  18. Idea is good, but government must go slow on such reforms. When 95 percent of business dealings are being done through cheques, it may not be right to outrightly ban cheque-books. First, some disincentives may be brought on, like increase in charges and people be discouraged to use cheques. Secondly, digital payments be made more smooth and safer, with clear liability clause. Thirdly, Banks must have sufficient band width to bear the increased load of internet banking. This way, we can eliminate the cheque books in due course. People should not be hassled.

  19. What exactly Modi wants ? Does he want to eradicate the concept of money and bring the magic wand of net connectivity into Indian life. What does he want to do with the illiterate misses ? Does he want to eliminate them too ?
    When there is some technological innovation, that supersedes all the existing ones, it would naturally be accepted. The government is totally behind minorities and does not heed what the majority wants or used to. By the power vested with it, the governments wants to turn the world round.
    Instead, let them concentrate on providing water at the quality and quantity needed, provide for better cooler ambience, by reducing carbon dioxide emissions, let them supply power free and abundantly. Not demonetisation, and de-chequefying, which are aimed at helping the vocal few that talk in languages least understood by the common man.

  20. Still SBI is a hurdle in cashless economy.i try to start after getting id for internet banking from bank ,still so many functions are not working and unable to transaction.even mobile recharge not possible from related app.only balance can be checked

  21. I disagree. Cheque books are not used for withdrawal of cash only. Large numbers of payments are made and receiver through cheques. Further Government had to make huge expenses on printing of currency notes but not on cheque books.
    However, waiving of the charges on the debit and credit cards would be a wise and effective step to make the country caseless. Government should sincerely consider the same.

    • What about saftey in online cheating fraud transection even in cyber court there r very few judges and cases peding and getting affected

  22. All the digitization and bank transaction charges, GST and rate chabges etc are putting large burden on the common man. The attachment of Aadhaar number is another area where in EPFO has stopped the small amount of pension all of a sudden and the digital life certificate cost any thing between 50 to 100 and none of the banks are doing this. Add to the vows of common man.


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