The finance ministry has said that there is no proposal to withdraw the bank cheque book facility, which is an integral part of the payments landscape.
As per reports, the clarification comes in the backdrop of reports 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.
Commenting on the issue, a Finance Ministry Official told the media, “The Government of India has reaffirmed that there is NO proposal under consideration to withdraw the bank Cheque Book facility."
The ministry emphasised that while the government is committed to transform India into a less cash economy and promote digital and electronic transactions, "cheques are an integral part of the payments landscape".
It said cheques form the backbone of trade and commerce, by being negotiable instruments, which often serve as the security for underlying trade transactions.