To make sure that cheque payments are honoured in time, RBI may come out with strict norms. According to a Hindustan Times report, government is stressing on a cashless economy to curb black money in the system. The central bank is looking to come out with more provisions to honour cheque payments in time, but without taking legal recourse, an official source told HT on the condition of anonymity. “The issue has been raised by various groups and it will be looked into… all necessary measures will be taken to ensure that these payment modes are further given a push,” the source quoted above told HT. At present, those issuing cheques that bounce can be penalised heavily or even imprisoned. However, the process is long and requires legal intervention.
The central bank has already undertaken several steps to ensure seamless and timely clearances of cheques. The Cheque Truncation System (CTS), implemented in the country in 2015, was aimed at facilitating faster processing of cheques. Under the system, all existing cheques were replaced with standardised cheques and data was captured at the collecting bank and an image of the same was then forwarded to the drawee bank. This led to speeding up the process of clearing payments and also protection against fraud.
When HT contacted, the RBI spokesperson said the current measures were sufficient, and though it was a legal process, it does not take more than 7-10 days for the issue to be resolved.