RBI ask NBFCs to gradually stop use of cheques

Non-banking financial companies are therefore,requested to take proactive steps in this regard by increasing the use of electronic payment systems,elimination of post-dated cheques and gradual phase-out of cheques in their day to day business transactions, the RBI said.

These will result in more cost-effective transactions and faster and accurate settlements,it added.

The Finance Ministry has also developed an e-payment system for disbursal of subsidies to consumers of fertilisers,LPG and kerosene. This system is likely to do away with the use of cheques and bank demand drafts to make payments.