To make cheque transactions safer, the Reserve Bank of India (RBI) has asked all banks to introduce the Positive Pay System effective 01 January 2021. The concept of Positive Pay involves a process of reconfirming key details of large value cheques. Under this process, the issuer of the cheque submits electronically, through channels like SMS, mobile app, internet banking, ATM, etc., certain minimum details of that cheque (like date, name of the beneficiary/payee, amount, etc.) to the drawee bank, details of which are cross-checked with the presented cheque by CTS. Any discrepancy is flagged by CTS to the drawee bank and presenting bank, who would take redressal measures.
National Payments Corporation of India (NPCI) shall develop the facility of Positive Pay in CTS and make it available to participant banks. Banks, in turn, shall enable it for all account holders issuing cheques for amounts of ₹50,000 and above. While availing of this facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheques for amounts of ₹5,00,000 and above.
Positive Pay System enables an additional security layer to the cheque clearing process wherein, the issuer of the cheque submits cheque details as per the process mentioned below. When the beneficiary submits the cheque for clearing, the presented cheque details will be compared with the details provided to the Bank through Positive Pay.
To avail this facility, the account holder (drawer of the cheque) needs to share cheque details at the time of issuance of the cheques for amounts of INR 50,000/- and above.
Cheque details as under:
These details can be submitted by the account holder at the nearest branch by filling a simple Positive Pay form.
Note – A customer will be required to register for the facility by submitting an application/ consent at any of your bank branches. Registration for Positive Pay System is NOT MANDATORY. Customers may register for the facility at their discretion.
AVONIC, a premier manufacturer of PTZ cameras and AI software, is excited to announce its…
The Central Board of Secondary Education (CBSE) has announced the Class 10 results for 2024.…
The Central Board of Secondary Education (CBSE) has announced the commencement of its free psychological…
The Union Public Service Commission (UPSC) has declared the final results for the Civil Services…
This year the National Testing Agency NTA announced that a new subjects are being added…
In a recent revelation, the All India Council for Technical Education (AICTE) has shed light…