Cheques are backbone of commerce, trade, no proposal to ban it: FinMin

New Delhi: The Ministry of Finance on Thursday refuted the reports that the Government was mulling to withdraw the bank cheque book facility as part of its plan to promote digital transaction.

“It is denied that there is any proposal under consideration of the Government to withdraw bank cheque book facility,” the ministry said in a press release.

Earlier, reports had emerged that after demonetising the high-value notes last year, Narendra Modi government was planning to ban cheque books.

A senior official of the Confederation of All India Traders, Praveen Khandelwal had told PTI recently that in all probability, the Centre may withdraw the cheque book facility in the near future to encourage digital transactions.

The finance ministry said that though the Government is committed to transform India into a less cash economy and promote digital and electronic transactions, it has no plans to discontinue bank cheque services.

“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,” it said.

The Modi government had, in 2016, banned the use of Rs 500 and Rs 1,000 notes that seized 86 per cent of the cash in circulation at the time. It had done so to move towards a cashless economy, powered by digitisation.