After note ban, will Modi govt now ban cheque books for its digital push?

CAIT Secretary General Praveen Khandelwal said the government needs to encourage the use of debit and credit cards

 

Business News : After deciding to revoke the legal tender of Rs 500 and Rs 1,000 currency notes in November last year, the Narendra Modi -led central government might now be working on another disruptive step to boost digital transactions — banning the cheque book. A senior functionary of the Confederation of All India Traders (CAIT) on November 16 said the Centre might withdraw the bank cheque book facility in the “near future” to encourage digital transactions.

CAIT Secretary General Praveen Khandelwal said the government needed to encourage the use of debit and credit cards. “In all probability, the Centre may withdraw the cheque book facility in the near future to encourage digital transactions,” he said.

Impact of cheque book facility withdrawal

Demonetisation was a big disruption for most Indians, right from poor labourers to big industrialists. Now, the withdrawal of the cheque book facility could have a massive impact as well. Most business transactions are conducted through cheques. According to experts, 95 per cent transactions currently take place via cash or cheques.

Since cash transactions have declined, transaction by cheque might have increased after demonetisation.

Use of cheque in India

Cheques are fairly popular in SME payments. By taking a PDC (post-dated cheque) against the delivery of goods, a supplier secures payments due in future from its customer. People pay by cheques while buying land and house, too.

Many landlords now take rent from tenants via cheque. Since November 8, 2016, digital payments like BHIM have grown. However, their sweet spot has been small-value payments (two to three figures). The retail and commercial payment usage strongly suggests that cheque is a very compelling method of payment for large-value payments (four figures and above).

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Demonetisation: Are your digital transactions secure?

There are no easy solutions regarding securing oneself in the cashless digital world

Latest News -  Paper money is becoming passe as the year comes to an end. The New Year brings in the promise of India going cashless with the population of 1.3 billion being pushed into a digital economy.

Today many users are being exposed to plastic money for the first time. Even the most learned people make mistakes in the digital world and that can prove very costly. Hence, for first-time users, it is a minefield out there and negotiating it needs a lot of tact.

Earlier this year, 3.2 million credit and debit card details, with a bulk of them from India's largest banker the State Bank of India, allegedly got compromised and till date, the investigating agencies have not been able to make much headway.

In a country where, according to UN figures, about 287 million adults are still illiterate how safe is it to indulge in cashless transactions?

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NPCI will announce 15,000 winners of 1000 rupees each for next 100 days, starting from Christmas

In a move to promote digital payments, the government of India has announced slew measures.

NITI Aayog CEO, Amitab Kant announced the #LuckyGrahakYojna.

The following points are the highlights of the scheme.

Digital payments through RuRay cards, UPI, AEPS and USSD between Rs 50-3000 will be eligible for awards. There will be a different prize for consumers and merchants.

Under the Lucky Grahak Yojna, daily 15,000 winners will eligible for a prize worth Rs 1,000 for the next 100 days starting December 25. A weekly award for around 7,000 consumers eligible for a maximum prize of Rs 1 lakh was announced.

NPCI will announce 15,000 winners of 1000 rupees each for next 100 days, starting from Christmas.

Under the Digi-Dhan Vyaapari Yojna, every week, more than 7,000 merchants will be eligible for Rs 50,000 prize.

Mega awards, in both the categories will be declared on the occasion on the birth anniversary of Dr Bhimrao Ambedkar. Under this Mega Award, consumers can win prize worth Rs 1 rore, Rs 50 lakh and Rs 25 lakh.

While merchants can win prize worth Rs 50 lakh, Rs 25 lakh, and Rs 5 lakh.

"Lucky Grahak Yojana and Digi Dhan Vyapari Yojana is Christmas gifts for the nation", said Amitab Kant.

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Cashless economy: India to see 65% rise in mobile frauds in 2017

Post demonetisation there has been a surge in digital transactions via e-wallets and other online payment gateways

With the surge in digital transactions via e-wallets and other online payment gateways, mobile frauds are expected to grow to 60-65 per cent in the country by 2017, a leading industry body said on Monday.

The joint study by Assocham and research firm EY, titled "Strategic National Measures to Combat Cybercrime", said a secure cyberspace and the government's initiatives in keeping tabs on cybercrime have become an important criteria for business to establish, operate and flourish in any region.

"Mobile frauds are areas of great concern for companies as 40-45 per cent of financial transactions are done via mobile devices and this threat is expected grow to 60-65 per cent," the study noted.

Credit and debit card fraud cases top the chart of cybercrimes and there has been a six-fold increase in such cases over the past three years.

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