Interestingly, there\u2019s no Digital Payment equivalent to a PDC. Standing Instruction comes close but SI is set up by debtor on his own bank account and can\u2019t be \u201cgiven\u201d to the creditor. At most, the creditor can ask the debtor to \u201cshow\u201d the SI on the debtor\u2019s Net Banking. After showing it, there\u2019s nothing stopping the debtor from cooly canceling the SI. When the due date comes, creditor won\u2019t receive the money but, unlike a bounced cheque, a canceled SI is not a criminal offence and the creditor is left with nothing to pursue the debtor with.<\/p>\n
In my blog post\u00a0Cheque – The Unsung Hero Of #CashlessIndia<\/a><\/span>, I described the key advantage of PDC:<\/p>\n Rent<\/p>\n Now, take rent payments from tenants.<\/p>\n Once the landlord and tenant sign a leave-and-license agreement for a typical period of 24 months, it\u2019s customary for the landlord to take twelve PDCs (Post Dated Cheques) for a year in advance. While the agreement legally binds the tenant to paying the rent on time, PDCs provide a practical way for the landlord to enforce the tenant\u2019s obligation without having to go to court to enforce the contract. That explains their traditional popularity for this usage scenario.<\/p>\n\n