SEBI Bars Payments In Cash As It Pushes Digital India

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    As the market regulator SEBI is on the path to promote Narendra Modi led 'Digital India' initiative, it has barred stock brokers to receive direct cash into their bank accounts. Also, cheque drawn by the clients in their favour will only be accepted, at the same time brokers will also transact using cheques when making payment to client for certain deals and transactions.

    In an order by SEBI it said, the stockbrokers would accept cheques drawn only by the clients and also issue cheques in favour of the clients only, for their transactions.
    In a circular the market watchdog said, "In view of the various modes of payment through electronic means available today, it is directed that stockbrokers shall not accept cash from their clients either directly or by way of cash deposit to the bank account of a stockbroker".

    SEBI Bars Payments In Cash As It Pushes Digital India
     

    It said, all payments would be made or received to or from the clients by crossed account payee cheque or DD or through any other electronic mode of payment as per the permissibility by the Reserve Bank of India.

    In the recent time, new modes of payment such as mobile banking UPI etc have sprung up, in a move to give a boost to the government gear towards cashless economy.

    Goodreturns.in

    Story first published: Friday, July 13, 2018, 12:33 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more