There are several different types of checks in India: The outstation variety, and normal, high-value varieties.
But the choice of currency in transactions today in India is cash, although they do receive a large amount of checks from overseas as well as many direct deposits since so many American and other countries outsource information technology jobs there.
In many parts of Asia, checks were really never widely used except by the very wealthy. Cold, hard cash has long been preferred as the unit of payment in this part of the world. Even today, their use is still declining in India and other parts of Asia. Even though markets are developing at a faster pace, much of the activity tends to be direct deposit and not activity by checks.
India at one time had a long tradition of check usage, as it passed laws in 1881 to formalize the usage of them. Up to until recently banks would give out checks for free to customers, and some still continue the practice to this day. Now, checks are rarely used at the point of sale in retail stores where cash and credit cards are most often requested as the preferred method of payment. Electronic transfers of money have led to a reduction in the amount of checks written for some time now and will continue to do so in the future as India moves closer to a cashless society that mirrors trends in the United States and other countries.
India has several of the same types of checks you'll find elsewhere in the world, but due to the popularity of credit cards and electronic funds transfers, they losing popularity. But do not look for them to totally die out, checks will be around in some form for several years to come.
- What is the most popular method of payment?
But the choice of currency in transactions today in India is cash, although they do receive a large amount of checks from overseas as well as many direct deposits since so many American and other countries outsource information technology jobs there.
In many parts of Asia, checks were really never widely used except by the very wealthy. Cold, hard cash has long been preferred as the unit of payment in this part of the world. Even today, their use is still declining in India and other parts of Asia. Even though markets are developing at a faster pace, much of the activity tends to be direct deposit and not activity by checks.
- Checks in recent decades
India at one time had a long tradition of check usage, as it passed laws in 1881 to formalize the usage of them. Up to until recently banks would give out checks for free to customers, and some still continue the practice to this day. Now, checks are rarely used at the point of sale in retail stores where cash and credit cards are most often requested as the preferred method of payment. Electronic transfers of money have led to a reduction in the amount of checks written for some time now and will continue to do so in the future as India moves closer to a cashless society that mirrors trends in the United States and other countries.
India has several of the same types of checks you'll find elsewhere in the world, but due to the popularity of credit cards and electronic funds transfers, they losing popularity. But do not look for them to totally die out, checks will be around in some form for several years to come.
