As part of its green initiative, the Reserve Bank of India has asked all non-banking financial companies (NBFCs) to gradually phase out use of cheques and shift to electronic payment system.The government, in its green initiative efforts, has suggested several steps for entities in financial sector, including NBFCs, for better utilisation of resources and delivery of services. “NBFCs are therefore, requested to take proactive steps in this regard by increasing the use of electronic payment systems, elimination of post-dated cheques and gradual phase-out of cheques in their day to day business transactions,” RBI said. These will result in more cost-effective transactions and faster and accurate settlements. The Centre has developed an e-payment system for disbursal of subsidies to consumers of fertilisers, LPG and kerosene.
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