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According to a recent press report the Reserve Bank of India, as part of its green initiative has asked all the non-banking financial companies (NBFCs) to shift to electronic payment system.

Reports said that the government has also adopted this green initiative and has asked all the financial sectors including NBFCs to follow this method as a result of which maximum utilization of available resources will take place and it will also be useful for the government to render their service to the public.

The Reserve Bank of India has asked the NBFCs to take a step ahead in eliminating the post-dated cheques and also to avoid the use of cheques in their daily transactions, so that the bank will get practiced in using the electronic payment system.

The RBI has asked NBFCs to take proactive steps in increasing the use of electronic payment systems, elimination of post-dated cheques and gradual phase-out of cheques in their day to day business transactions. The regulator said that such efforts from NBFCs will result in more cost-effective transactions and faster and accurate settlements.

Reports said that the finance ministry has developed an e-payment system for disbursal of subsidies to consumers of fertilizers, LPG and kerosene which expected to do away with the use of cheques and bank demand drafts to make payments.

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Pradeep Yuvaraj

Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.
Pradeep Yuvaraj

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