India has gone live with its paperless
transactions initiative.
The system will eliminate cheques completely
with all payments to be made via direct debit.
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According to the country’s finance minister,
Pranab Mukherjee, the introduction of e-payments as the main
transaction method will lead to better governance and
transparency.
The initiative means banks are no longer
allowed to process cheques in order to check corruption in
transactions.
The finance ministry of India took the
decision as part of an e-governance initiative, arguing that
paperless fund transfers can avoid risk of irregularities in
payments made by cheques.
A ministry official said in a statement that
disbursal of funds through cheques often gave rise to corruption
and that the payment to the beneficiary would often get
delayed.
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By GlobalData
