The Central government is planning for another sensational step towards encouraging digital transactions and a less cash society. The government is wishing to ban the chequebook. Somehow transaction through cheques increased compared to the previous after the demonetisation. 91 percent of the cash still in the rotation after the demonetisation.
In the same way in our country, 95 percent transactions take place through cash and cheques. After the demonetisation, most of the people not showing an interest towards digital transactions. Keeping this in the mind Central government is planning for banning chequebook. The Central government has a target to increase the digital transactions from 1 Billion to 25 Billion (2,500 crores).
Khandelwal said at the launch of ‘Digital Rath’, a joint initiative of the CAIT and Mastercard, the government needs to encourage the use of debit and credit cards. The Central government spends Rs 25,000 crore to print the currency notes. The government spends another Rs 6,000 crore on their security and logistics.
If we encourage the digital transactions it would help to reduce the money we spend on printing notes. But financial experts and bank depositors are not ready to accept this news. They have expressed unwillingness to this matter. Already bank charges 1 percent on payments through debit card and 2 percent through credit cards. The government should incentivise this process by providing subsidy directly to the banks so these charges can be abandoned.
As per the Reserve Bank of India data, the digital transactions from November 2016 to September 2017 rose around 31 percent. From every thousand members, 180 to 190 people only using cards for payments. If it continues we can not reach the target. To attract the rest of 800 members towards the digital transaction we need to ban the cheques. Still the small and big business vendors are doing transactions through cheques. The Central government is thinking banning cheque is the only way to turn them towards digital transactions.