Reserve Bank of India has released a discussion paper on a plan to disincentivise usage of cheques. Public have been asked to send their comments before February 28, 2012.
Disincentivisation of cheques automatically means greater push to the electronic banking along with the attendant risks.
It is our observation that the risks in Electronic Banking in India have not so far been adequately addressed by Banks and even the efforts of RBI in this regard have failed to yield results.
The Damodaran Committee report has not been notified and the GGWG report is yet to be fully implemented by the Banks.
We therefore feel that the time is not ripe to push Indian Bank customers towards a forced adoption of E Banking. This may lead to higher risks in Banking and the responsibility for further endangering the Indian Banking system will be on RBI.
Public comments for the discussion paper are to be submitted before February 28, 2013.
Naavi.org will be submitting its own response separately.
We urge public to also submit their response on whether the use of cheques need to be disincentivised by positive action or be left to market forces.
Comments may be emailed here: firstname.lastname@example.org