RBI pushes for electronic payments

To give electronic payments a push, the Reserve Bank of India (RBI) today asked banks not to accept post-dated cheques (PDCs) and equated monthly instalment payment cheques on locations where the electronic clearing system (ECS) is available.This means new borrowers will have to compulsorily shift to electronic payment system if the ECS facility is available. The central bank also said banks should make all efforts to convert existing PDCs to the ECS system by obtaining a fresh mandate from borrowers. However, it hasn't specified any timeframe for such conversion.ECS, a popular mode to transfer funds, is used by institutions to make bulk payment of amounts towards distribution of dividend, interest, salary, pension, etc, or for bulk collections of amounts towards telephone, electricity, water dues, etc.

Source : http://www.business-standard.com/article/finance/rbi-pushes-for-electronic-payments-113031800680_1.html