Lok Sabha Question No. 1777 (UNSTARRED), answered on 2023-07-31
Subject: Financial Digital Transaction
Ministry: FINANCE
Asked by: Bhagirath Chaudhary

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 1777

ANSWERED ON MONDAY, 31 st  JULY, 2023/ SRAVANA 9, 1945 (SAKA)

## Financial Digital Transaction

## 1777.  SHRI BHAGIRATH CHOUDHARY:

Will the Minister of FINANCE be pleased to state:

- (a) whether use of cheques for financial transactions has risen in the country as per official records  but  promotion  of  digital  transactions  is  not  rising  due  to  lack  of  serious, concrete and expeditious action against cases of cheque bounce;
- (b) whether  the  Government  proposes  to  further toughen  the  prevalent provisions regarding financial transactions through cheques and strictly implementing them thus ensuring early disposal of ongoing legal cases so as to promote digital transactions, if so, the time by which it is likely to be done; and
- (c) if not, the reasons therefor?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (DR. BHAGWAT KARAD)

- (a): As per information available with the Reserve Bank of India (RBI), data on cheques and digital transactions is as per the table below:

| Financial Year   |   Total Volume of Cheques (CTS) (in Lakh) | % Growth over the previous year   |   Total Digital Payments Volume (in Lakh) | % Growth over the previous year   |
|------------------|-------------------------------------------|-----------------------------------|-------------------------------------------|-----------------------------------|
| 2020-21          |                                   6570.84 | -                                 |                          437068           | -                                 |
| 2021-22          |                                   6599.19 | 0.4                               |                          719768           | 64.7                              |
| 2022-23          |                                   7109.27 | 7.7                               |                               1.13939e+06 | 58.3                              |

The growth in digital transactions during FY 2021-22 and FY2022-23 is much higher than the growth in volume of cheques

- (b) and (c): Payment through 'cheque' is provided under the Negotiable Instruments Act,1881. However,  to  encourage  customers  to  adopt  digital  banking,  to  create  awareness  about payment products and to disseminate information about safe digital banking, RBI has been conducting Electronic Banking Awareness and Training (e-BAAT) programmes across the country. The main thrust of a e-BAAT programme comprises:
- i. Awareness about Digital Payment Products
- ii. Awareness about Frauds and Risk Mitigation
- iii. Awareness about grievance redressal.

The target audience includes cross section of the society consisting of bank staff, customers, government  officials,  students,  Self  Help  Groups,  farmers,  shopkeepers,  traders,  and  the common man. From 2019 till June 2023, a total of  1184  e-BAAT  programmes  have  been conducted  by  various  Regional  Offices  of  RBI  wherein  electronic  payment  systems,  their benefits  and  issues  related  to  safety  were  explained  to  the  participants.RBI  has  been observing a Digital Payments Awareness Week in second week of march from 2021. During the  week observed in 2023, RBI launched Mission 'Har Payment Digital' as an awareness initiative to make every person in India a user of digital payments. RBI has also launched '75 Digital  Villages'  programme  in  observance  of  75  years  of  Independence.  Under  this programme, Payment System Operators (PSOs) will adopt 75 villages across the country and convert them into digital payment enabled villages.

Apart  from  above,  RBI  conducts  360-degree,  multimedia  channel  /  platform  based  public awareness campaigns under the tag of 'RBI Says' or 'RBI Kehta Hai' to create awareness among  members  of  public  about  various  digital  payment  initiatives  that  cover  customer's safety, security and convenience.

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