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To push digital transactions, govt may withdraw cheque book facility: CAIT

Confederation of All India Traders Secretary General Praveen Khandelwal said the government needs to encourage the use of debit and credit cards

Press Trust of India  |  Bhopal 

Cheque book

A senior functionary of industry body on Thursday said the Centre may withdraw the bank in the "near future" to encourage transactions.

(CAIT) Secretary General Praveen Khandelwal said the government needs to encourage the use of debit and

"In all probability, the Centre may withdraw the in the near future to encourage transactions," he said.

Khandelwal was talking to reporters at the launch of 'Rath', a joint initiative of the and to encourage traders to adopt different modes of transactions and promote the cashless economy.

The secretary general said, "The government spends Rs 25,000 crore on the printing of currency notes and another Rs 6,000 crore on their security and logistics.

"Moreover, banks charge 1 per cent on payments through and 2 per cent through The government needs to incentivise this process by providing subsidy directly to the banks so these charges can be waived."

Khandelwal said only 5 per cent of the total 80-crore ATM-cum-debit cards are used for cashless transactions, while 95 per cent of them are used for cash withdrawals.

Executive Director (Global Community Relations) Ravi Aurora said this initiative with the will provide a "major fillip in our endeavour to move towards a less-cash society".

"Under the literacy campaign, we have held about 450 conferences during the past three years. By the end of next month, we have set the target to reach to 10 lakh merchants to support the government's target of powering 2,500 -crore transactions," Aurora said.

Aurora said 'Rath' would further strengthen the nationwide movement of 'Cashless Bano India" in line with the government's vision of India.

"We believe small traders and merchants are an important constituency to help India transform into a knowledge economy."

He said has invested about USD 500 million in India during the past couple of years and it plans to pump in another USD 700-800 million.

president B C Bhartia said a sizeable part of the Indian population consists of youths.

"Youths prefer transactions. Even temples have put up machines for transactions. Now, the government needs to make transactions more attractive," he added.

First Published: Thu, November 16 2017. 20:31 IST