Reserve Bank of India encourages electronic payments

Reserve Bank of India (RBI) encourages electronic payments.

To give electronic payments a push, the Reserve Bank of India (RBI)electronic-payments has asked banks not to accept Post-Dated Cheques (PDCs) and Equated Monthly Installment (EMI) payment cheques on locations where the Electronic Clearing System (ECS) is available. Thus, new borrowers will have to compulsorily shift to electronic payment system if the ECS facility is available.

Reserve Bank has also asked all banks to make all efforts to convert existing PDCs to the ECS system by obtaining a fresh mandate from borrowers.

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