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".
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.