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Transactions via cheques hit all time low, says report

Transactions via cheques hit all-time low, says report

Transactions via cheques hit all-time low, says report
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By CNBC-TV18 Aug 23, 2018 9:12:57 AM IST (Published)

Post demonetisation, transactions via cheques have hit an all-time low, Business Standard reported, citing a Reserve Bank of India report.

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Transactions through mobile payment apps, e-wallets and netbanking are up on an average, said the report.
According to the RBI report, the value of transactions via cheques as a proportion to the total number of transactions has come down to 3 percent from nearly 12 percent in June 2011, said the paper. It added that banks traditionally receive a good portion of their fee income by processing cheques, in addition to providing customers with new cheque books for an additional charge.
“The overall impact may not be very significant for the banking system on account of greater use of say mobile banking and e-wallets for example. The present increase in use of cards/e-wallets is for transactions which were earlier done through cash, which strictly do not compete with cheques. Banks have however also increased their charges on various other banking transactions which provides some compensation,” said Rajesh Mokashi, managing director and CEO of CARE Ratings was quoted by the paper.
On the contrary, the banks say that the same is seen rising, despite transactions shifting to digital platforms. The report further added that the average number of transactions every month via cheques in 2012 stood at 16.53 million and as of the June 2018, the number of cheque-based transactions has increased to 94.7 million a month on an average.
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