Four motives why agencies nevertheless love cheque books


The Finance Ministry has declined the hearsay of cheque ebook ban for pushing digital transactions, saying that the government has no plans to scrap it. Here’s why Indian companies love their cheque books

India is undergoing a large digital push and a mere rumor of presidency retreating checkbooks created enough furor. And, why? Because agencies still love their checkbooks for moving cash. Sure, India is shifting — slowly — closer to cashless economy, but cheques retain to preserve significance.

You had been privy to the numerous makes use of-of a cheque ebook. However, did you understand that the simple looking cheque book might be used to finance a mortgage? This can also appear incredible but this is a fact. Cheque book allows individuals to access cheque ebook loans to fulfill their immediate monetary contingencies.

Cheque books typically include financial institution accounts. Usually, the only use that the cheque ebook may be put to is getting entry to coins in the account or to draw a cheque in favor of a person whom money is owed. Now the chequebook can be hired to finance loans.

Cheque ebook loans can be a strategy for your pressing coins needs. This serves as a quick manner to get cash increase to meet small financial emergencies. The cash you borrow with a cheque book loan can be used for any reason – to pay bills or for some other non-public motive. The gain of taking a cheque e-book mortgage is that the coins go at once into the borrower’s account.

Cheque Book Loan is a brief- term loan granted commonly for a term of 14 to 18 days. Borrowings on cheque book mortgage start from as low as £one hundred to £800. To get a cheque book mortgage, a cheque ebook owner desires to attract a put up-dated cheque in favor of the loan company, which works as a security in opposition to the loan. The submit-dated cheque will come for compensation at the date designated within the cheque. The amount for which the cheque is written may be a piece higher than the mortgage amount. Difference between the cheque amount and the loan offered against it’s going to account for the fees charged. The amount of charges charged for this mortgage varies from lender to lender.



The price of interest on a cheque ebook loan is significantly excessive because the mortgage is for a quick-term duration. The lender intends to cowl his cost of lending and wants to minimize the chance worried in lending the money through pegging the hobby fee upwards. However, you want to live privy to the reality that the mortgage will deliver a fee in phrases of an excessive hobby charge, so one ought to take utmost care to make proper use of the cash borrowed.

To get a cheque ebook mortgage one needs to satisfy positive basic requirements. A borrower should have regular earnings, and an active financial institution account with cheque e-book and cheque assure card. The profits of the borrower should be without delay paid into his financial institution account.


While applying for a cheque e-book loan, one wants now not fear approximately his/her credit score score. Thus, humans with terrible credit history or so-called ” problem instances” can also observe for this loan. The loan company is least taken into consideration about the horrific credit history. Additionally, cheque e-book loans can be helpful in enhancing debtors’ credit score via helping them in repaying the antique debts on time.

Applying for a cheque ebook loan online makes the mortgage process much less complicated. Borrowers want now not go to the loan providers or fill lengthy packages. This will assist in saving time and money of the borrower. Borrowers need to accumulate mortgage quotes from numerous lenders and evaluate them in order to make the search a good deal more effective. The chequebook loans, located in this way, could be of vast help in enjoyable one’s expectations.

According to RBI information, in August, there have been cheque transactions really worth Rs 6,224.34 billion, nearly three times extra than debit card transactions and near 10 instances more than cellular wallet transactions, no matter virtual transactions spiking in the post-Demonetisation technology. Here’s why corporations nonetheless love checkbooks in the age of going virtual:

Whether it’s miles virtual transactions or different sorts of the traditional economic device, there is a charge concerned. Writing a cheque expenses not anything.

Cheques had been a fundamental a part of India’s price landscape. Over the years companies have developed a feeling of trust and comfort with writing cheques. Moreover, alternatives to securing bills due to destiny are available with post-dated cheques.

Digital transactions do now not come without the danger of Cyber dangers. Cheques are more secure, it is surpassed by a person and that a person receives the cash in his account. It is herbal for organizations to pick out the safer manner in particular while a huge quantity is involved.

Most importantly, in India, where a majority of the population remains struggling to evolve to the digital boom, especially in small cities and rural regions, writing a cheque is handy than the usage of a cell phone, getting into the password, ensuring community energy, net connection et al.
Though, cheques have their demerits too. While online transactions are short, cheques can also take 2-5 days to clean, but if it is more secure, chargeless and convenient, why organizations could shift to some other mode of bills, unless there may be some incentive.
Pinky Khanna, the Personal Tax expert at EY India, says, “Cybersecurity dangers, safety against frauds and disposing of transaction charges from virtual transactions are some of the essential steps that want to be taken before checkbooks can be phased out…. Plus, educating the older era and people in smaller cities stays key to make this an achievement.”