Charge for cash withdrawal and deposits of cheques by customers: RBI paper
The RBI paper said fresh loans, PDCs should be completely stopped, with suitable conditions for late payment and non-payments which should be disclosed upfront.
Existing PDCs should be converted into electronic payment mandates within a prescribed timeline.
"For any cheques issued beyond the stipulated limit, charges may be levied at the time of payment/debit to the account by the paying bank when the cheque is presented for payment through clearing. Such charges may be higher than the charges levied on electronic payments of similar value," it said.
It said that additional charge should be imposed on payment of dividend through cheques.
RBI said that corporates and institutional customers are the largest users of cheques across all value bands accounting for 54 per cent - 64 per cent of cheques processed.
"Access to cheque books should be made costlier for such corporate / institutional customers. There should be no free cheque books given," the RBI paper said.
"It is found that even where educational institutions and public utility companies are accepting electronic payments, they are levying certain convenience fees to the payers which need to be stopped," the paper said.
For corporates, it said that steep charges should be levied by all banks on cash deposits/withdrawals by current account holders into/from their accounts. These charges need to be levied by all banks.
As regards payment made by government department, the paper said that for individuals they should quickly adopt electronic payments for which a specific timeline should be set for implementation.