Finance Ministry

No Proposal Under Consideration to Withdraw Bank Cheque book Facility. Government denies media report

No Proposal Under Consideration to Withdraw Bank Cheque book Facility. Government denies report appeared in a section of the media
Press Information Bureau 
Government of India
Ministry of Finance
23-November-2017 20:20 IST

No Proposal Under Consideration to Withdraw Bank Cheque book Facility 

In a section of the media, it has appeared that there is a possibility that the Central Government may withdraw bank cheque book facility in the near future, with an intent to encourage digital transactions. It is denied that there is any proposal under consideration of the Government to withdraw bank cheque book facility. 

In this regard, it is emphasized that while the Government is committed to transform India into a less cash economy and promote digital and electronic transactions through multi-pronged initiatives, cheques are an integral part of the payments landscape, and form the backbone of trade and commerce, by being negotiable instruments, which often serve as the security for underlying trade transactions. 

In fact, the Union Finance Minister, in the Budget Speech 2017-18, had announced, “As we move faster on the path of digital transactions and cheque payments, we need to ensure that the payees of dishonoured cheques are able to realise the payments. Government is therefore considering the option of amending the Negotiable Instruments Act suitably.” 

DSM/SBS

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