A recent press report said that the Reserve Bank of India as a part of green initiatives has asked all the financial services companies including non banking financial companies (NBFCs) to gradually stop using cheques and switch over for electronic payment system.
The government has suggested various steps for all the units in the financial sector including NBFCs in its green initiative efforts for utilizing their resources effectively and also to deliver their services in a better way.
The Central Bank has therefore requested the NBFCs to take proactive steps regarding this to effectively utilize their electronic payment systems and eliminating post – dated cheques and stop using the cheque transactions gradually for the daily business transactions. These electronic payment systems would help in cost – effective transactions and would also help in fast and accurate settlements.
The Finance Ministry has also introduced an e – payment system for the disbursement of subsidies to consumers of fertilizers, LPG and Kerosene. This system would make the transactions via cheques and bank demand drafts to become obsolete.
The RBI’s rate hike has made the new and also some of the existing home loans and other loan borrowers anxious about the chance of loans becoming dearer.