In a section of the media, it has appeared 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. It is denied that there is any proposal under consideration of the Government to withdraw bank cheque book facility.

In this regard, it is emphasized that while the Government is committed to transform India into a less cash economy and promote digital and electronic transactions through multi-pronged initiatives, cheques are an integral part of the payments landscape, and form the backbone of trade and commerce, by being negotiable instruments, which often serve as the security for underlying trade transactions.

In fact, the Union Finance Minister, in the Budget Speech 2017-18, had announced, “As we move faster on the path of digital transactions and cheque payments, we need to ensure that the payees of dishonoured cheques are able to realise the payments. Government is therefore considering the option of amending the Negotiable Instruments Act suitably.”

Cheque facility retention affirmed; government denies withdrawal and may amend Negotiable Instruments Act to help payees. Denial that the Government proposes withdrawal of bank chequebook facility; cheques remain integral negotiable instruments central to trade and commerce, even as the Government promotes digital transactions. The Government is considering amendments to the Negotiable Instruments Act to enhance payee remedies for dishonoured cheques rather than removing cheque facilities.