Efforts on to minimise cheque transactions

VARANASI: Deputy Governor of the Reserve Bank of India (RBI) Shyamala Gopinath said efforts were being made to encourage electronic transaction of money to minimise transactions through cash and cheques.  Talking to reporters on Saturday, she said it was not possible to stop the use of cheques for money transactions in one go, but efforts were on to encourage maximum use of ATM and electronic transaction of money. For the purpose, money transactions through cheque would be made costly, she said and added efforts were also being made to expand the reach of banking system in rural areas of the country.   She further stated that RBI had undertaken financial literacy and financial inclusion campaign in rural areas to bring rural populace into banking fold. Through this campaign, rural masses are educated about the banking system and they are mobilised to open their accounts in banks. She said positive response was being received and efforts were being made to develop proper infrastructure and link the government schemes to banks. "It is just a beginning, a lot has to be done yet," she said and added technological upgradation of the system was being done to provide maximum benefits to people.  Replying to a query regarding the operation on non-banking financial institutions, she said RBI had got a suggestion that it should regulate the functioning of non-banking financial institutions for small borrowers. She said financial inclusion in rural areas was needed for proper growth and  development.  Gopinath was in the city to attend programme on financial inclusion and financial literacy organised by the Lucknow unit of RBI at Nagepur village in Raja Talab area on Saturday. The programme was organised under RBI's programme to conduct outreach visits and develop certain identified villages as model villages. Addressing the programme, she highlighted various activities of RBI and expressed her hope that rural development was possible if banks and state governments worked together. Addressing the function, the executive director of Union Bank of India SC Kalia said efforts were being made to upgrade the Kisan Credit Cards to draw money from ATM without going the the bank branch. The function was also addressed by RBI Regional Director Amrendra Sahoo and others. The RBI personnel also distributed smart cards among the villagers, school bags to children and cricket kit for the students of Shiv Narayan Memorial Inter College on the occasion.