The Ministry of Finance, Government of India, has asked (pdf) all Public sector banks (PSB) to promote online payments and has directed them to make payments to their customers, vendors, and suppliers electronically instead of paying via cheques, starting 1st July. The ministry intends to lower the cost for handling cheques. The circular issued to Chairmen of all PSBs (Public Sector Banks) quotes a study which shows that the cost of handling cheque for the bank during its entire lifecycle, from printing till storage and destruction, is between Rs 25 to Rs 40 per cheque depending upon the size of the bank. The total cost of handling cheques by the Public Sector banks is estimated to be Rs. 4,000 -Rs. 8,000 crore. For the year 2011-12, data collected by the RBI reported that the number and value of cheque transactions was 134 crore and Rs. 98,94,000 crore respectively. During the same period the value of electronic transactions was just Rs. 22,07,500 crore. The circular also mentions that since banks have heavily invested into technology as well as in developing various applications for electronic payment, they should make use of the technology available for reducing the cost for banks. For the same, the ministry of finance has asked all public sector banks to use only electronic transactions for all payments to and from customers/staff, All payments to vendors and suppliers, disbursement of loans and payments towards installments and investments and ECS advice instead of post dated cheques. Reduce NEFT Charges Apart from this, banks have been also advised to reduce charges for NEFT…
- Why did the Delhi High Court restrict use of Amitabh Bachchan’s image and voice? November 25, 2022
- Why did an Indian exchange, CoinDCX, publish its Proof of Reserves days after releasing its R2L ratio? November 25, 2022
- DPDP Bill, 2022 Has Received Good Response From Stakeholders: MeitY’s Ashwini Vaishnaw November 25, 2022
- Twitter Blocks Tweet of CJ Werleman’s YouTube Show Discussing Police Violence Against Indian Muslims November 25, 2022
- Unique Identification Authority of India (UIDAI) says verify Aadhaar as ID proof using QR November 25, 2022
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
The Structure and Style of a Dogma Community: Conspiracy theories and organized Twitter engagement on Sushant Singh Rajput
Studying the 'community' supporting the late Sushant Singh Rajput (SSR) shows how Twitter was gamed through organized engagement
Do we have an enabling system for the National Data Governance Framework Policy (NDGFP) aiming to create a repository of non-personal data?
A viewpoint on why the regulation of cryptocurrencies and crypto exchnages under 2019's E-Commerce Rules puts it in a 'grey area'
India's IT Rules mandate a GAC to address user 'grievances' , but is re-instatement of content removed by a platform a power it should...
Why ‘group privacy’ should be recognised, and how ‘non-personal’ data becomes a regulatory blindspot
There is a need for reconceptualizing personal, non-personal data and the concept of privacy itself for regulators to effectively protect data
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...