To promote electronic payments, the government has asked banks to reduce cheque-based transactions by at least 20 per cent through identified branches in 2012-13.

The finance ministry has directed banks to ensure that e-payment mode gets the attention it deserves, sources said.

"It is considered imperative for banks to take six minimum steps, including identification of top 20 per cent branches in terms of business volume (2011-12)," sources said.

The aim is to bring down the number of cheque-based transactions by at least 20 per cent through identified branches in 2012-13.

The government has been encouraging transactions through e-payment channels to reduce the number of transactions through cheques and other expensive modes.

The Finance Ministry has also asked public sector banks (PSBs) to ensure that all payments and disbursements by the banks, except sundry payments, are made only electronically.

"Banks must devise suitable monitoring parameters to judge the effectiveness of the e-payment drive," sources said, adding that the Executive Director dealing with the matter should be assigned the responsibility of supervising e-payment drive in the respective banks.

The government expects that successful implementation of the e-payment drive should result in significant reduction in the volume as well as value of transactions using cheques and pay orders.