No proposal to withdraw bank cheque book facility: Finance Ministry denies reports

The finance ministry today said there is no proposal to withdraw the bank cheque book facility as part of exercise to promote digital transaction. It also said that, 'cheques are an integral part of the payments landscape, and form the backbone of trade and commerce, by being negotiable instruments'.

The clarification comes in the backdrop of news reports 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. 

"The Government of India has reaffirmed that there is NO proposal under consideration to withdraw the bank Cheque Book facility," said one of the tweets. Finance Ministry it is communique also quoted Arun Jaitley's speech which said, “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"