New Delhi: To encourage customers to switch to electronic mode for transferring funds, the Reserve Bank's study group has proposed a fee on paper cheque payments.
The study group of the central bank suggested in a report on "Migration of paper-based funds movement to electronic funds transfers" that the charge on payments made through paper-based cheques should be borne by the customers.
The use of paper-based cheques cannot be completely eliminated from India in the near future, has already taken steps towards the introduction of Cheque Truncation System (CTS) to address the issue.
RBI posted the report on its website on Friday for public comments, which would be accepted till May 15.
The report also suggested that customers should not be allowed to pay credit card dues and mobile bills through cheques instead they be asked to compulsorily pay bills for online transactions through electronic mode.
Suggesting that electronic fund transfers should be made cheaper than paper mode payments, the report said: "To begin with, ECS-based transactions should be made free for three years" and legal protection be made available to such transfers.
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