Pointing to the tardy pace in giving thrust to electronic payment, the finance ministry has asked public sector banks (PSBs) for plans to cut the volume of transactions through cheques and other expensive modes.
Banks were to identify the top 20 per cent branches in terms of business volume in 2011-12. This step was to be the basis to bring down the number of cheque-based transactions by at least 20 per cent in 2012-13.
They were also to spell out details on reducing the National Electronic Funds Transfer (NEFT) charges to zero for values up to Rs 1 lakh.
The ministry said a review of activities indicates some banks have still not intimated the action taken to reduce charges for the NEFT.
Some banks have given details of only branches, while others have furnished details of different branches in different months on business volumes, it said.
The branches, once decided, should be fixed and not changed on a monthly basis, based on business of the previous month.
