New Dimension towards the Usage of Cheques in Sri Lankan Payments System

Abstract

The usage of cheques other than cash (Coins and Note) and e- payments are integral part of Sri Lankan payment system. Bank cheques continue to remain as the main non cash payment in the country. In recent time with the introduction of new technology for the paper base payment system, the usages of cheques have been appreciated. Simultaneously the new legal and regulatory environment for the growth of electronic payment system have been presented by the legislation nevertheless legal environment relates to paper base payment system remain stagnant. Though the Central bank designated the national cheque clearance functions under the Monetary Law Act no 58 of 1949 and is regulated by the payment settlement Act no 28 of 2005, did not incline to safe usage of cheques like introducing cheque clearance via Post office in the area to avoid the possibility of happening impediments and calamity of cheques. According to the above facts, it is revealed that the legal protection given to the customers of the usage of cheques, by upgrading the existing law or imposing new legislations, are poor in this stage. The main goal of this project is therefore to fill this gap. Moreover it is further given a comparison with the jurisdiction of India. Information in relation to this will subject to both primary and secondary sources, referencing journals, statutes, licensed commercial bank reports. Eventually the existing legislation, in relation to customers of the usage of cheques, to be upgrade and new introductions like Inter- city cheque speed clearance and clearing house membership to the post office should be given by enacting new provisions for the existing law