New Delhi: The government on Thursday quashed rumours regarding its decision to ban the cheque book, assuring bank account holders that it was planning no such move.
The government’s clarification on Thursday came amidst media reports suggesting that after the demonetisation of high-value notes, it was now planning to abolish cheque books to encourage digital transactions.
"The Government of India has reaffirmed that there is NO proposal under consideration to withdraw the bank cheque book facility. It had appeared in a certain section of media 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. This has been denied by the Government and reaffirmed that there's no such proposal," said the Ministry of Finance in a tweet on Thursday.
The Government of India has reaffirmed that there is NO proposal under consideration to withdraw the bank Cheque Book facility.
— Ministry of Finance (@FinMinIndia) November 23, 2017
It had appeared in a certain section of media that there is a possibility that the Central Govt may withdraw bank cheque book facility in the near future, with an intent to encourage digital transactions.This has been denied by the Govt & reaffirmed that there's no such proposal
— Ministry of Finance (@FinMinIndia) November 23, 2017
A senior official of the Confederation of All India Traders (CAIT), Praveen Khandelwal had recently told PTI that in all probability, the Centre may withdraw the cheque book facility in the near future to encourage digital transactions.
Although digital transactions have surged post demonetisation, data shows that people still prefer to use cash more.
Had the government abolished cheque books, it would have caused major inconvenience to traders who still conduct most of their daily transactions by means of cash and cheque books. After the demonetisation of Rs 500 and Rs 1,000 notes, the use of cheque books by traders is likely to have risen.
