As the world is progressing digital trends are replacing older systems with faster and more convenient alternatives. One such trend is netbanking and alternatives methods to transfer money. These have replaced the age-old payment methods of sending cheques.
Cheques: A cheque is a document which orders the bank to pay a specific amount from a person’s account to another person in whose name it has been issued.
Chequebook: A cheque book is a set of blank cheques offered by a bank.
The 2 main types of cheques in India are:
Bearer cheque: When the word ‘bearer’ printed on the cheque is not cancelled, the cheque is called a bearer cheque. This can be encashed by any person who gives the cheque to the bank. However such cheques are risky because if they are lost, it’s finder can collect the money from the bank.
Crossed cheque: A cheque that has been marked to specify an instruction about the way it is to be redeemed is a crossed cheque. A common instruction is to specify that it must be deposited directly into the bank account of the person to whom it is issued and not immediately cashed over the counter. A crossed cheque has 2 parallel lines on the left corner of the cheque, which says that it cannot be given to the bearer of the cheque.
#1. But, cheques have now become very last season
Since cheques are paper-based, expensive, time-consuming, prone to frauds like forgery, embezzlement and identity theft and they require the user to visit a bank on a regular basis, they’ve now been replaced by more sophisticated and advanced modes.
#2. Netbanking has become the new cheque:
Net and mobile banking have now replaced cheques since they make payments more convenient. These are apps and websites of banks, using which consumers can carry out daily transactions like payment of loans, bills, transferring money, making purchases, checking account balances, viewing a mini statement etc. online. Thanks to these now one rarely needs to go to a bank thanks. Apart from these, even digital wallets like Paytm have made transferring money a lot easier.
#3. The cheque rein is almost over in some places:
Despite it being in use for over 350 years cheques have been totally phased out in the Netherlands and it is has become rare in countries like Belgium, Germany, Switzerland and Sweden since 2016.
#4. But the cheque still has a few loyal fans:
Few older people, charitable companies and trusts still prefer age-old cheques or cash as they are not comfortable with new-age technology. Cyber security is a main concern for people to switch to digital modes of payments. Once the system has become more stronger, cheques might be phased out completely.
Read what some of the fans from Britain have got to say: The joy of cheques: six reasons why they’re better than online banking
So the next time you get a cheque or write one, make sure you capture the moment because it probably might be your last time!