RBI had implemented the positive payment system from January 1, 2021, but now it will be made mandatory from August 15, 2021. Under this, some information has to be sent to the bank for payment of a certain amount through cheque.
The Reserve Bank of India had implemented the Positive Pay System with effect from January 1, 2021, in order to control fraud on payment through cheques. But now it will be made mandatory from 15th August. Public sector Indian Bank has started sending alerts to its customers about this. By sending a message to its customers, the bank has informed that from August 15, 2021, Positive Pay System (PPS) will be implemented on cheques of Rs 2 lakh or more.
Actually, after the large number of cheque fraud cases, RBI had issued guidelines regarding positive payment system. It has also been implemented from 1 January 2021. RBI has told banks that this facility will be implemented for all account holders issuing cheques of Rs 50,000 or more.
Required for payment of more than Rs 2 lakh through cheque
RBI had also said that banks can also make this facility mandatory for an amount of Rs 5 lakh or more on their behalf. According to RBI guidelines, Indian Bank has implemented this facility on payment of Rs 2 lakh or more through cheque. Indian Bank will now make it mandatory from August 15.
What is Positive Payment System?
The Positive Payment System has been developed by the National Payments Corporation of India (NPCI). Under this system, customers transacting in high amounts have to give some important information about their cheques to the bank. After this, these details are matched while clearing the payment of these cheques. In case of any discrepancy or mismatch of details, the payment is stopped.
What information needs to be given to the bank regarding cheque payment?
Indian Bank has said that customers will have to issue their account number, chequer number, date of issue, transaction code, MICR code with the bank. These details have to be shared 24 hours before it is sent to the cheque clearing. Bank customers can give this information through website, internet banking and mobile banking or by visiting the home branch.
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