The RBI discussion paper on disincentivisation of the use of cheques is very disturbing. The objective of the discussion paper is to get public response on the points raised in the discussion paper or rather get a public endorsement on the suggestions contained there in.
The objective of the proposed changes is to promote the use of E-Banking in preference to the traditional banking channels which use cheques and cash. In the process RBI has suggested several “Anti Consumer Measures”.
A sample of statements made in the discussion paper are as follows.
1.The charges levied by banks beyond this number (minimum number of cheque leaves) may range from moderate to steep
2.In case card holders make payments of card dues using cheques, then high convenience charge may be levied.
3. For any cheques issued beyond the stipulated limit, charges may be levied at the time of payment / debit to the account by the paying bank when the cheque is presented for payment through clearing.
4. In case of individuals who have invested in shares/debentures/bonds etc. and have not opted for receiving dividend/interest directly into their bank accounts, we may consider levying a processing charge when the cheque is deposited into their bank account for collection
5. Cash withdrawals and deposits of cash by individuals may also be charged
6. Discourage cheque collection boxes at public places – have it only at bank branches. This will reduce the convenience of using cheques by individuals
The suggestions indicate a sadistic tendency of RBI and very very depressing.