The article, "Make in India with coins" by A K Bhattacharya (September 14) is another well researched article in the series to curtail use of cash in day-to-day transactions. Comparisons with countries such as Brazil, China, Mexico and South Africa are relevant. It shows the use of cash in India is many times more than in these countries.
While the government is doing its bit by emphasising the use of technology in financial transactions, one important point missed by various esteemed writers is the increasing use of cheques in financial transactions by small parties and individuals. Despite Section 138 of the Negotiable Instruments Act - that makes refusal of cheques a criminal offence - being around for decades, people are still hesitant to accept cheques. On the other hand, cheque-bouncing cases are also a strain on the justice delivery system.
The government should implement a stringent system in which cheques are necessarily accepted. A person dishonouring a cheque should get only one chance, say, 14 days to make amends. If the chance is squandered, there should only be a court order after that.
On the larger question of whether to opt for coins or currency notes, we should have more coins of Rs 50 and Rs 100 denominations. The spare capacity and technology should be used to print currency for smaller countries that need the facility; this way India would earn foreign exchange. In the long run, it will be cost effective as the cost of sorting, storing and destroying soiled notes will be saved. Reducing the use of cash will also prevent ATMs, cash vans from being robbed.
Naresh Saxena, New Delhi
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