Banking cheque rule: If you are going to pay by check then this news can be useful for you. Actually, from January 1, 2021 last year, the Reserve Bank had implemented the positive pay system.
The Reserve Bank of India had decided to introduce a ‘positive pay system’ for cheques in 2020 to prevent banking frauds, which may require certain key details for payments above Rs 50,000. Now gradually all the banks are implementing it at their convenience. Now from tomorrow 4th April, Punjab National Bank (PNB) is going to implement PPS rules.
PNB has said that from April 4, 2022, the positive pay system system will be mandatory. Positive Pay System Confirmation will be mandatory if customers issue cheques of ₹10 lakh and above through bank branch or digital channel. Customers have to provide account number, cheque number, cheque alpha, cheque date, cheque amount and beneficiary name.
This rule is applicable in banks including SBI, BoB.
Earlier, other banks including SBI, BoB, BOI, Axis Bank, HDFC Bank, ICICI Bank have made this system mandatory. Let us know in which bank the positive pay system is being implemented on how many cheques.
1. SBI: State Bank of India has implemented a new system for cheque payment from January 1, 2021. SBI has implemented this for cheque payments above Rs 50,000 i.e. you will need to re-confirm if the cheque is deducted more than fifty thousand.
2. BoB: Bank of Baroda’s rules related to cheque clearance (Positive Pay Confirmation) are effective from February 1. This rule of BoB is applicable on cheques of an amount of 10 lakhs or more.
3. Bank of India (BOI): These rules relating to cheques of Bank of India are effective from January 1, 2021. Confirmation is mandatory in BOI for cheque clearance of Rs.50,000/- and above. The customer has to provide information including Drawers Account Number, cheque Number, cheque Date, Amount and Payee’s Name.
How does Positive Pay System work?
Through this system, cheque information can be given through SMS, mobile app, internet banking and ATM. These details will be re-verified before making payment of the cheque. If any discrepancy is found in it, the bank will reject the cheque. Here if there is a case of two banks i.e. the bank whose cheque has been deducted and the bank in which the cheque has been inserted, then both will be informed about this.
