Consumer Issues
Moneylife Foundation demands scrapping of the move to penalise usage of cheques

Moneylife Foundation, as the voice of 21,500 savers, has sent a memorandum to the RBI, pointing out why this move is premature, ill-conceived, impractical and hugely detrimental to the interests of consumers

The Reserve Bank of India recently issued a discussion paper titled “Disincentivising Usage and Issuance of Cheques”. The paper seeks views of ways to promote the usage of electronic transfer of funds by penalising the usage of cheques. Moneylife Foundation strongly and unequivocally opposes any move to curtail the use of cheques through the levy of punitive charges as proposed in the report. India suffers from low penetration of Internet, erratic power situation and low e-literacy even among otherwise literate persons. In that context, penalizing the usage of cheques would cause hardship to the majority of population including senior citizens. Worse, the charges, meant to act as ‘disincentive’ for consumers would only lead to unjust enrichment of banks.
The entire report, in the Foundation’s opinion is premature, ill-conceived, impractical and hugely detrimental to the interests of consumers. The Foundation demands that the idea must be rejected forthwith in its entirety. 




4 years ago

I in person as also in the capacity of the Chairperson Consumer Complaints Cell, fully endorse the contents of this letter from 'MONEYLife Foundation'.
Sss=global yahoogroups, a social networking group of senior citizen members have already opposed this and if required, their endorsements can be obtained.

Mohan Siroya


4 years ago


Now a days (Recently) Banks are charging for Cash payments for Credit card dues.This is not correct because,all banks are collecting interest for the balance dues of Credit cards.
Hence the banning of Cheque payment system is also hindrance to customers who are having credit cards.
Hence RBI should not accept the such proposals.


4 years ago

how right,
Many people are not computer savvy.
Right now My transaction with Indian railway has failed because of the getway something or the other issue.

V Rajendran

4 years ago

As a practising cyber crime advocate, I have already expressed my views AGAINST this ill-conceived of RBI in the forums available. I had an opportunity to address viewers in a Panel Discussion in the No.1 Tamil News Channel "Puthiya Thalaimurai" last week on ATM frauds and related issues. In that forum too, I expressed this view. Thank you, MoneyLife. We are all fully with you. Please guide if I can do anything more on this? V Rajendran, [email protected]


4 years ago

This move is absolutely ridiculous and anti-consumer.

Where is the internet connectivity in non-metros that will permit easy online payment?

Where are the lean, high-performance and low-bandwidth optimized banking portals that make it fast and easy to use online banking? Take a look at ANY banking portal, and these are heavy, graphic-filled webpages that take ages to load, are poorly designed with horrible navigation, and completely non-intuitive user-interfaces. Even the third party payment websites such as BillDesk eventually link you back to your own bank's website to make the payment.

Where is the complete elimination of NEFT and RTGS charges by banks? RBI permits levying of transaction charges "upto" Rs.5/- per transaction for online transactions, and most banks (including SBI) do levy these charges. In comparison, they charge Rs.3/- per cheque leaf. With this warped incentivisation, why should any individual pay MORE per transaction, especially when the cost to the bank is just a few paise for online transactions?

And last but not least, all banks have recently introduced cheque truncation services to speed up processing of cheques electronically. If they were planning to dis-incentivize cheques, why have they invested hundreds of crores in these systems?

MoneyLife needs to aggressively fight this stupid, draconian and antiquated regulation and scrap it before it becomes a widespread disease of over-regulation and micro-mis-management.


4 years ago

At the end of the day, India has been, since inception, about mulcting the citizen to fund the profligacy and corruption of the State. India has cast all morality and propriety to the winds while having produced more laws than any one individual, whether lawyer judge, babu, neta or other can recollect, comprehend or live with. Particularly as they are, for the most part, based on momentary agendas of social and asset distribution engineering rather than any consistent underlying logic.

Ramesh Iyer

4 years ago

I support RBI's move to discourage customers from using cash / cheques, when Banks have heavily invested in technology-driven facilities like ATMs/NetBanking/Mobile Banking, which are not just far more convenient (reducing dependence on Branches), accessible 24x7, but also help reduce costs for both Banks & customers. Besides, the new-age facilities help reduce circulation of black-money. So, in principle, I agree with RBI, but hope it incentivizes customers who use new-age facilities, rather than penalize those who Bank the old-fashioned way. However, if Banks levy 'admin' charges for Branch-banking for certain customers, they would be justified, as they are forced to maintain infrastructure for such stubborn customers.


arun adalja

In Reply to Ramesh Iyer 4 years ago

agreed banks spend money on infrastructures but how many percentages of people uses internet?and some corporate bodies are charging 1% commission if you pay by net offices have no work so they collect utility bills by cheque /cash.

Ramesh Iyer

In Reply to arun adalja 4 years ago

That's precisely why I mentioned in my earlier comment that penalizing customers for using traditional Banking methods is not the right move. Instead, RBI should give incentives to those who embrace new-age facilities, to increase its greater use. Persuasion always works better than coercion.


4 years ago

If at all RBI has to do something it should lower the limit for dealing in cash transactions.

Nifty, Sensex will move sideways: Tuesday Closing Report

Nifty will now move sideways in the range of 5,880-5,980

The market settled lower as the economic indicators released today dashed hopes of the Reserve Bank of India (RBI) cutting rates in its policy review next week. The Nifty will now move sideways in the range of 5,880-5,980. The National Stock Exchange (NSE) witnessed a volume of 58.08 crore shares and advance-decline ratio of 560:954.


The market opened flat with a positive bias ahead of the release of industrial production data for January and retail inflation figures for February. In the global space, Asian markets were in the green in morning trade tracking the US markets, which settled higher on Friday’s jobs report.


The Nifty opened three points up at 5,545 and the Sensex resumed trade at 19,676, a rise of 30 points over its previous close. Nervousness kept the market the market near its previous closing levels for a major part of the morning session.


While the Sensex hit its intraday high in early trade with the index touching 19,698, the Nifty’s high was seen around 11.00am wherein the index was at 5,952,


India’s retail inflation remained in double digits at 10.79% in January, displaying an upward trend for the fourth straight month. On the other hand, industrial production rose by 2.4% in January from 1% in the same month last year.


The market turned negative in late morning trade after the release of higher-than-expected retail inflation numbers. Selling in consumer durables, realty, power and banking stocks led the indices to their lows in noon trade. The Nifty slipped to 5,894 and the Sensex went back to 19,506 at their respective lows.


The benchmarks made a feeble attempt to emerge in the positive around 2.30pm, but selling pressure pushed the market lower, to close in the red for the second day.


The Nifty closed 28 points (0.48%) down at 5,914 and the Sensex declined 81 points (0.41%) to end the session at 19,565.


The broader indices underperformed the Sensex today, as the BSE Mid-cap index declined 0.63% and the BSE Small-cap index fell 0.53%.


BSE Fast Moving Consumer Goods (up 0.49%) and BSE Auto (up 0.08%) were the only gainers in the sectoral space. The losers were led by BSE Consumer Durables (down 1.99%); BSE Power (down 1.36%); BSE Realty (down 1.24%); BSE Bankex (down 0.92%) and BSE Capital Goods (down 0.90%).


Nine of the 30 stocks on the Sensex closed in the positive. The main gainers were Hindustan Unilever (up 1.16%); Tata Motors (up 0.96%); Jindal Steel & Power (up 0.62%); ITC (up 0.59%) and Reliance Industries (up 0.45%). The major losers were Tata Power (down 3.12%); Bharti Airtel (down 2.13%); BHEL (down 2.12%); HDFC Bank (down 1.79%) and Sterlite Industries (down 1.55%).


The top two A Group gainers on the BSE were—MMTC (up 7.17%) and Hindustan Copper (up 3.69%).

The top two A Group losers on the BSE were—MCX (down 4.86%) and Berger Paints (down 3.89%).


The top two B Group gainers on the BSE were—Marathon Nextgen Realty (up 19.98%) and Uflex (up 19.95%).

The top two B Group losers on the BSE were—KGN Enterprises (down 20%) and Polytex India (down 19.98%).


Markets in Asia settled mostly lower, erasing early gains, mainly on profit taking after recent gains.


The Shanghai Composite tanked 1.04%; the Hang Seng dropped 0.87%; the Jakarta Composite declined 0.41%; the KLSE Composite shed 0.09%; the Nikkei 225 fell 0.28%; the Seoul Composite declined 0.50% and the Taiwan Weighted settled 0.55% lower. Bucking the trend, the Straits Times rose 0.31%.


At the time of writing, the key European indices were marginally lower following reports of an unexpected decline in UK’s manufacturing output in January. At the same time, US stock futures were trading in the negative.


Back home, foreign institutional investors were net buyers of shares aggregating Rs988.22 crore on Monday while domestic institutional investors were net sellers of stocks totalling Rs786.57 crore.


Of the 50 stocks on the Nifty, 11 ended in the green. The key gainers were Ranbaxy Laboratories (up 2.47%); Ambuja Cements (up 1.50%); ACC (up 1.12%); HUL (up 0.95%) and Tata Motors (up 0.93%). The top losers were Cairn India (down 3.24%); Tata Power (down 3.11%); BHEL (down 2.34%); Bharti Airtel (down 2.21%) and Siemens (down 2.01%).


Infrastructure developer IL&FS Engineering and Construction today said it has received a Rs1,436 crore Engineering Procurement and Construction (EPC) order for four-laning of Kiratpur Ner Chowk section of NH-21. The stock climbed 3.03% to settle at Rs56.05 on the NSE.


Titagarh Wagons AFR SA, the French subsidiary of Titagarh Wagons, has bagged an order from French Railways for 400 hopper cereal wagons worth 39 million euros (around Rs275 crore).  Titagarh Wagons closed 2.20% higher at Rs197.55 on the NSE.


Elecon Engineering Company has been awarded an order worth Rs46.97 crore by Tecpro Systems. The order is for design and commissioning of various equipment for the Kanti Bijali Projects of NTPC at Muzaffarpur, Uttar Pradesh. The stock fell 3.54% to settle at Rs36.80 on the NSE.


Allahabad High Court says government may reconsider protocol list

The union government has so far been maintaining that the order set out in the Table of Precedence is meant only for State and ceremonial occasions and has no application in the day-to-day business of the government. However, it is used daily by all the VIPs and VVIPs ignoring the hardships faced by citizens

The Lucknow bench of the Allahabad High Court, while hearing a writ petition, directed social activist Dr Nutan Thakur to send a representation to the Union government for reconsidering the protocol list. Following this directive, Dr Thakur has sent a representation to the government requesting to quash the present Table of Precedence no33-Pres/79 dated 26 July 1979 ( ).
Dr Thakur, who is also a Right to Information (RTI) activist filed the writ petition for quashing the Table saying this is contrary to the provisions and spirit of the Constitution. The petition claimed that the vice-president is primarily the chairman of the Rajya Sabha and hence to place him above the other heads of the three wings of governance envisaged in the Indian Constitution seems to be inappropriate. Instead, the prime minister, speaker of the Lok Sabha, the chairman of Rajya Sabha and the chief justice of India, should be placed at the same footing, Dr Thakur said in the petition. 
Similarly, she said, many positions not even mentioned in the Indian Constitution like cabinet secretary of the Union government, chairman and members of the Planning Commission and the deputy prime minister have been placed above many Constitutional posts which is inappropriate.
“It is often said that the order of precedence has only a formal relevance and is not synonymous with a person’s authority and importance, yet this order of precedence had a more widespread use, on various other occasions. It somehow gets associated with the state recognition of the authority concerned as regards his/her seniority/importance/precedence in governance and other social recognitions,” Dr Thakur said in the petition.
While dismissing the petition for lack of any representation, the HC bench consisting of justice Uma Nath Singh and justice VK Dikshit directed Dr Thakur to send a copy of the writ petition before the Union of India, by way of a representation for consideration and order. 
Table of Precedence issued by the secretary to the president of India determines an authority’s official, social and public stature and has its own importance and relevance. The Union government has so far been maintaining that the order set out in the Table of Precedence meant for State and ceremonial occasions and has no application in the day-to-day business of the government. 




4 years ago

MoneyLife Foundation has Published earliar an Article on AP Aicc Chief Botsa Satyanarayana's Daughters Wedding Extravagant Ceremony,for which RTA official's Letter issued to Subordinates to arrange Transport Vehicles and Police Elaborate arrangments done for it are Published.As per Table of Precendance explained above now,RTA and Police Action is Illegal.As Petetion can be Filed in AP High Court,submitting RTA's Letter and Police Letter(if it can be obtained with RTI Act by MoneyLife ),AP HC may issue suitable instuctions to AP Govt.& Recovery of RTA & Police Expenses incurred for Marriage arrangements.

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