Bank of Baroda: Bank of Baroda is going to change the rules of cheque clearance for its customers from August 1. The bank has made positive pay system mandatory for customers for cheques of Rs 5 lakh or more from August 1.
Bank of Baroda: Following the guidelines of the central bank RBI regarding the clearance of cheques, the big public sector bank – Bank of Baroda has made some changes in its cheque payment rules. Bank of Baroda has told its customers that from August 1, Positive Pay System will be mandatory for payment of cheques with an amount of 5 lakhs or more. In its absence, payment of cheque can be stopped.
Bank gave information
Bank of Baroda said in a tweet that we are committed to your banking security. With Positive Pay System, we protect you from cheque fraud. With effect from August 1, 2022, the positive pay system (BOB Positive Pay System) will be mandatory for the amount of Rs 5 lakh or more.
Committed to ensure the security of your banking. With Positive Pay System, we are here to protect you from cheque frauds. Cheques of Rs. 5 lakh & above are confirmed before payment. So simply #BankSafe with #BankofBaroda#AzadiKaAmritMahotsav @AmritMahotsav pic.twitter.com/xPzDwjy8Jp
— Bank of Baroda (@bankofbaroda) July 5, 2022
What is positive pay system
National Payments Corporation of India (NPCI) has developed PPS under which a customer issuing a high denomination cheque is required to share certain essential details like cheque number, cheque amount, date and name of the beneficiary. These details are cross-checked while presenting thecheque for payment.
Cheque Reject if error is found
The cheque issuer can provide the required details through electronic means like SMS, mobile app, internet banking or ATM. After this, these information will be cross-checked before cheque payment. If any discrepancy is found in it, the bank will reject the cheque. Here if there is a case of 2 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.
What are the guidelines of RBI
The Reserve Bank of India (RBI) had issued guidelines to provide the facility of PPS for cheques of Rs 50,000 and above. The central bank has asked to consider making it mandatory for cheques above Rs 5 lakh.
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