Seeking to discourage usage of cheques, an RBI paper, on Thursday, suggested that banks should charge cash withdrawal and deposit through cheques, while the government agencies should do away with ‘convenience charges’ for online payment of utility bills.

“In order to avoid increased dependence or slippage to cash-based transactions, high (both in amount and frequency) cash withdrawals and deposits of cash by individuals may also be charged,” said a discussion paper floated by the RBI on ‘Disincentivising issuance and usage of cheques.’

The suggestions, on which the RBI has invited comments from the public by February 28, seek to establish a “less-cash” society and encourage greater adoption of electronic mode of payment.

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