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  • Category: Miscellaneous

    Don't worry, cheque books won't be banned

    Post de-monetization, there are many rumours floating in the air. Recently many of us have heard this rumour. This rumour states that the Government is going to ban all cheque books. Even a section of media has reported this. Now, I have received clarifications on this issue.

    Ministry of Finance, Government of India has clearly stated that that there is no proposal of withdrawing cheque book facilities. Cheques are important mode of payment and these form the backbone of trade and commerce in our country. Cheques are negotiable instruments and also serve as the security for underlying trade transactions.

    So, please don't pay heed to these rumours. Government is not going to ban cheque books or transactions by cheque in near future.
  • #618261
    Recently this has become a big point of debate. Many people are thinking that the chequebooks will not be used further and we will be denied this facility. But without cheques so many transactions can't be done. When we go for loans we have to give post-dated cheques. In business, many times chequebooks are used. So without a cheque managing the business is also very difficult.
    With this post now you have made it clear that the Government is not having any ideas of withdrawing cheques. It has become clear now.
    In general, the cheque usage and withdrawing money from the bank directly has come down recently. Many of us are doing many transactions online and there is no necessity of hard cash these days. Slowly a time may come and that many of us will forget about cheques. Even Now I use chequebook very rarely.

    drrao
    always confident

  • #618266
    Though whatsapp messages are making rounds stating that cheque book facility would be withdrawn , I was not perturbed at all as we seldom use the cheque books and every transaction is done by transfer or withdrawing cash from ATM and paying as cash to the persons or others. Moreover when the government wants to have every transaction what we make should be transparent and be known to the government, by banning cheques it would pave way for benami transactions through cash again and there are every chance of corrupt practices growing again with this.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #618296
    There may not be any action immediately to discontinue cheque books. However by and by, due to various derivatives and alternate receipt/payment mechanisms the use of cheques will practically taper down and may exist only in principle. We know the state of the DD(demand Draft) now. Earlier DD was the most trusted instrument in trade dealings. It was the main one in remitting application fees for examination and jobs.That has almost disappeared. Early existing Mail Transfer and Telegraphic Transfer are discontinued now. They are all replaced by more faster real time effective mechanisms. Similarly Hundis, which were once the most popular in trade transactions involving time for payment are only in memory now.

    Cheque also will face similar fate automatically when new instruments evolve. Now the customer himself is doing the bank transactions online. Did we imagine it?
    I think there would have been some discussion or preliminary mind search in this matter. That is why the rumour has spread.

  • #618314
    Heard this sometime back on what'sapp forwards. Thanks for the post, chequebooks may find the exit in due course of time. I remember the first time seeing chequebooks with the account holder's name printed on it and dad keeping it in a plastic folder designed for chequebooks. To be able to sign and issue a cheque was a great privilege a few decades ago. To draw money one had to issue an uncrossed cheque, collect a token, wait for the number to flash, then give the token and collect the money. Instead, now we just have to have a card and enter a PIN, cash is released automatically. Everything is being phased out in favour of digital and internet-based transactions. I think still some people would use it for transactions and it would take some time for it to be replaced in favour of a card or a code.


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