Problems of Cheque Abolishment: People and business to suffer

Mumbai Nov 21: Are you using cheque book for digital transactions.make sure that you make alternative arrangements because the Narendra Modi Government may soon ban the usage of
cheques in order to speed up the acceleration of digital transactions and move towards the less cash society.

Government officials have said that "the decision has already being taken and it would be announced in the next budget session".

However, experts have said people would face challenges if the cheques are abolished they are

Non-Availability of cash:
Currently, many people would rely on cheques to withdraw cash in the case and it would help them.Although there is a ban on cash transaction above rs 2 lakhs and it is not applicable for banks many people withdraw cash upon their needs and they would divide the amount into portions and some people may find it difficult to carry such cash transactions which are essential.

Small and medium business would be affected :

Currently, many businesses are carried out by receiving cheques as a source of advance payments and the abolition would severely impact the business as the people relied on the cheques during the time of demonetisation and the business may protest and it hs indirect impact on the employment and the economy may once again slow down.

Lack of awareness

Many people are not familiar with digital banking and they rely on cheques as they feel it is safe and they have a trust that they can complain if cheque bounces and they fear the increase in cyber frauds these days.