Indian government to end cheque books in India

21 Nov 2017

Indian government to end cheque books in India

Indian government is now trying to move towards a cashless economy, as a result of which government is trying to abolish the cheque books.

According to the CAIT Secretary General Praveen Khandelwal, the Indian government is planning the abolishment of the cheque book. The results and effects could be massive as most of the transactions are conducted through cheques. Almost 95% transactions currently take place via cash  or cheques.

Currently, the Indian government is focusing on moving towards a cashless economy and to meet its aim it has launched several measures and has also come up with payment apps like BHIM.

As of now government is planning to withdraw cheque book facility but it has to support this act by "providing subsidy directly to the banks" so that charges on debit and credit card payments can be waived.