After demonitisation in 2016 by Modi Govt, Now reports suggesting that govt may ban cheques to promote digital payment.

Govt is doing everything possible to make India less cash economy and to boost Digital payments it will be next move by the govt of India. “In all probability, the Centre may withdraw the cheque book facility in the near future to encourage digital transactions,” Praveen Khandelwal, secretary general of Confederation of All India Traders (CAIT).

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

Talking to the reporters at the launch of ‘Digital Rath’, a joint initiative of the CAIT and Mastercard, Khandelwal said the government  needs to encourage the use of debit and credit cards, “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 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.”

The cheque transactions may have increased manifolds ever since demonetisation crippled cash transactions.

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.

Lets see whether this ban create chaos to the Indian economy or will benefit the economy in longer run.