Bt2,000 options for consumers

They can cash the cheque immediately, keep it for later withdrawal from a commercial bank, or use it to buy goods and services directly.

The government is encouraging people to spend rather than keep the money as savings. It hopes that the Bt2,000 handouts will not only lessen the burden on low-income people, but also boost economic growth.

Bangkok Bank senior executive vice president Teera Aphaiwongse said the bank would set up cash counters close to where the government plans to distribute the cheques.

This means that people can get cash from the bank shortly after they receive the cheques, he said.

The 10.4 million cheques will be in people's hands in three batches, with the first being distributed on March 26. Recipients must show their ID cards in order to have them cashed at Bangkok Bank.

"If the government hands out the cheques at a department store, we will also be there with a counter for getting them exchanged for cash," said Teera.

He said the bank would try to facilitate the public as much as possible, otherwise there could be problems with so many cheques being issued at the same time.

"The people have struggled [in these tough economic times], so we will try to help them get their money," he said.

Recipients can alternatively deposit the cheque in their account at any bank, either keeping it as savings or withdrawing the money later.

"They can take the cheques home and exchange them for cash later," Teera said.

In the final option, people can use the cheques directly for shopping. Under this scenario, they will get discounts of 10-20 per cent when they buy goods and services from companies participating in programmes associated with the handout scheme.

The Finance Ministry's Comptroller-General's Department yesterday invited 20 consumer goods companies to discuss their discount plans.

Manus Jamweha, deputy director-general, said most of the companies were ready to discount their prices by 10-20 per cent. They will sign a memorandum of understanding to this effect tomorrow.

The firms include Central, Robinson, BigC, Carrefour, Oichi, MK Suki, Giffarine and McDonald's.

Participating companies will receive the money five days after they send the Bt2,000 cheques to Bangkok Bank.

Some companies have been concerned about the possible circulation of fraudulent Bt2,000 cheques. Bangkok Bank, however, will issue a manual on how to detect illegal cheques.

Petcharat Uthaisang, marketing director for McThai, said McDonald's would give a 20-per-cent discount to cheque-holders, with no minimum purchase price.

A source from Transport Co said the company would give a 10-per-cent discount for return tickets on air-conditioned Por One and Por Two buses.

Companies such as Big C would not disclose their promotions at this stage, for fear of losing a marketing disadvantage.

"I believe the promotions will be attractive enough for consumers to use the services," said Manus.

After Bangkok Bank receives the cheques - from the original recipients or other banks - it will send them to the Bank of Thailand for data capture.

BOT Assistant Governor Chim Tantiyaswasdikul said the process, which would be separate from the central bank's normal clearing system, had the capacity to handle about Bt1 million worth of cheques a day.

However, some banks have expressed concern about the number of transactions, as they also receive

 tax-rebate cheques at the end of March.

The clearing system's capacity is about 800,000 cheques per day. It generally has to handle no more than 600,000 cheques each day.

Meanwhile, Chim told reporters that he disagreed with some banks' decision to convert all ATM cards into debit cards and charge higher fees to cardholders, as this would reduce customer choice.

However, customers could always change to another bank if they do not like what their own is doing, he said.