To discourage the use of cheques, a discussion paper by the Reserve Bank of India (RBI) suggested today that banks charge for cash withdrawal and deposit through cheques. And, that government agencies do away with convenience charges for online payment of utility bills. Plus, discouraging cheque collection boxes at public places.
“To avoid increased dependence or slippage to cash-based transactions, high (both in amount and frequency) cash withdrawals and deposits of cash by individuals may also be charged,” said the discussion paper, titled ‘Disincentivising issuance and usage of cheques.’ The suggestions, on which RBI has invited comments by February 28, seek to establish a “less cash” society and encourage greater adoption of the electronic mode of payment.
The other major suggestions include restrictions on the number of free cheque books, a high fee on cheque books, mandatory online payment of credit card bills and a ban on post-dated cheques.
It suggested issue of free cheque books by banks be kept to a certain number in a year, with charges beyond this number, ranging from moderate to steep rates, depending on the usage history of the customer.
