RBI has suggested that banks should charge for cash withdrawal and deposit through cheques while the government agencies should do away with convenience charges for online payment of utility bills.
As per the discussion paper floated by RBI, high cash withdrawals and deposits of cash by individuals may also be charged in order to avoid increased dependence to cash-based transactions.
The other major suggestions include restriction on number of free cheque books, high fee on cheque books, mandatory online payment of credit card bills and ban on post-dated cheques. It also suggested that the government should discourage cheque collection boxes at public places.
The suggestions, on which the RBI has invited comments from public by February 28, seek to encourage greater adoption of electronic mode of payment.