@NPCI_NPCI @nsitharamanoffc @rbi @nsitharaman @DFS_India Dear @dilipasbe an idea to eliminate physical cheques from the banking industry for your perusal is explained below in the thread. Cc @rahuldeodhar @TheSwamy #contactless #godigitalbanking 1/9

@rajeevsinghal NPCI processes around 80 million plus cheques a month. Processing costs of cheques is not recovered adequately by Indian Banking Industry. #contactless #godigitalbanking 2/9

@rajeevsinghal Average value of cheque is less than Rs. 1 lakh. Cheques give beneficiary a confidence that she has an instrument to protect her right. Presently future dated NEFT/RTGS are not covered under 138 of NIA. #contactless #godigitalbanking 3/9

@rajeevsinghal Can we make two changes in the law and payment process systems. First to include electronic NEFT/RTGS under 138 of NIA. Second to build a feature in the payment processing systems to issue E-PDC (electronic post-dated cheques) #contactless #godigitalbanking 4/9

@rajeevsinghal E-PDC, will be post-dated NEFT/RTGS & beneficiary will receive an electronic instrument in her email/internet banking. Beneficiary will have rights similar to having a physical cheque in her hands. #contactless #godigitalbanking 5/9

@rajeevsinghal This can be deposited any time during the validity of the e-PDC. However, a payee will not get the credit before the due date. A payee will have rights to deposit on the stated date, or deposit on a later date. #contactless #godigitalbanking 6/9

@rajeevsinghal Typically payee Interacts with issuers before depositing a cheque. Payee has to exercise such options and nothing will be automated. We can create a cheque folder in a net banking account. #contactless #godigitalbanking 7/9

@rajeevsinghal Wherein a payee can choose a deposit date within 3 months from the stated date or cancel it. Banks can send electronic messages in case cheques is dishonoured & need to be represented. #contactless #godigitalbanking 8/9

@rajeevsinghal Drawee bank have to issue an equivalent of Physical Cheque in case a payee wants to proceed with legal route should she unable to realise the amount. All the rights of payee will work as if cheque is in her physical possession. #contactless #godigitalbanking 9/9