Saturday, March 23, 2013

முன் தேதியிட்ட காசோலைகள் பயன்பாட்டுக்குத் தடை ! ரிசர்வு வங்கி ஆணை !

In a notificarion issued on 18th March 2013, the cenrtal bank RBI said the system of post-dated cheques and payment via equated monthly instalment ( EMI ), in either the old or the new formet , would be banned ffrom now wherever elecrtonic facilities are available.

 " Lending banks shall make all eforts to convert existing PDCs in such locarions into electronic clerance
 ( ECS ) or / regional  ( RECS  ) for debit by  obtaining fresh mandates from the borrowers," the RBI said.

Lenders across India are sitting on a pile of huge number of PDCs worth thousands of crore of rupees. Most of them are retuctant to call the borrower, take a mandate fot ECS and return all the PDCs. This not only a timr-consuming process but also increases the workload on bank employees.

While on paper the idea looks good, there are several burdles for implementing these changes, PDCs are the most favoured system by lenders across India, as it is consisdered "fail-safe". in case the borrower defaults.

In case of default in repayment through PDC, the borrower can be tried under Section 138/ 142 of the Negotiable Instrumenrs Act, 1881, Section 138 aims to promote better compliances in terns of honouring cheques and discharging liabilities by imposing a penalty for any default committed in this respect.

It is a mediam of speedy remedy provided for the protection of the holder/payee of the cheque, where the debitor seeks to discharge his obligation through cheque but does not indent  to honour it. Even the Supreme Court, in a recent judgement, has ruled thast stop payment of PDCs issued by a person to discharge kis/ker debt  or liability could amount to penal offence.

A bench comprising Justice Mr.M.B.Shah and Justice Mr. Arun Kumar said, "A PDCs will lose its credibility & acceptability if it is payment can be stopped routinely." Another issue with the RBI's new directive is at present, there are about 80 centres or / locations that offers local ECS, while there are just 9 centres, which offer RECS across India. National ECS, on the other hand is operated ar Mumbai & facilitates the coverage of all core-bankaing enabled branches located anywere in India.

Though our Indian banking system is devloping fast, the access to banking today is not available to one-third of our population & ramifications of a hasty decision to penalise usage of cheques will too catastrophic for a nation such as ours, which requires social up-liftment & inclusive banking before technology on our people.   

  Earlier, while speaking at chrnnai in December 2012, De.K.C. Chakrabarty, Deputy Governer, RBI had said, "Tdchnology has the potential to act as force multiplier in our financial inclusion efforts, provided it is implemented in a planned manner. There is however, an increasing realizarion that mere reliance on technology-enabled non-face to face channels alone would not be sufficient to meet our goal of creating an inclusive financial system. There is a need for opening motr Brick-and-mortar ourlets as delivery points, both as a control mechanism for business correspondents ( BCs ) & gain the trust & acceptability of the masses."

Before asking bang to stop accepting PDCs, the RBI needs to first educate the banking public about using ECS / RECS facility and incentives its usage, if needed.                                              



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