RBI study group moots cheque payment fees

According to the panel, to begin with, ECS-based transactions should be free and continued for three years. The payee of a cheque has certain legal protections under the Negotiable Instruments Act against dishonour of such instruments. 8220;Similar comfort should be available for the electronic mode of funds transfer,8221; the report said. The RBI has posted the report on Migration of paper-based funds movement to electronic funds transfers on its website for public comments, which would be accepted till May 15. The report also suggests that customers should not be allowed to pay credit card dues and mobile bills through cheques and that they should, instead, be asked to compulsorily pay bills for online transactions through the electronic mode.

The report also recommends that the government should be encouraged to migrate to electronic-based receipts and payments in three years and that the RBI should review the progress every six months.