A Reserve Bank of India (RBI) panel has suggested that banks clear cheques through electronic transfer of funds. At the same time customers can use free Internet based transactions.
The panel suggested that banks have to educate their customers on the need to shift to electronic processing and in case cheques are already used, processing charges might be passed on to the customers. The panel recommended that banks should be prohibited from using the real-time gross settlement (RTGS) system for transactions below INR 10 lakh and for regular and repetitive payments like salaries. The panel suggested that repetitive payments should be routed through electronic clearing service (ECS)/ National Electronic Funds Transfer (NEFT). The panel has also prepared a roadmap to shift from paper-based transactions to electronic payments.
