PNB said that it has taken an important step to protect the customers from the possibility of fraud in case of large amount cheques. According to the bank, from April 4, settlement of cheques worth Rs 10 lakh or more will be done only after confirmation from the issuer.
new Delhi . Public sector Punjab National Bank (PNB) has made a significant change regarding its cheque payment. According to the bank, from April 4, the settlement of cheques worth Rs 10 lakh or more will be done only after reconfirming the same from the issuer.
PNB said on Tuesday that this step has been taken to protect bank customers from the possibility of fraud in case of large amount cheques. Under this, Positive Payment System (PPS) will be mandatory from April 4, 2022. The bank had implemented the system of CTS (Cheque Truncation System) clearing of Rs 50,000 and above as per RBI guidelines from January 1, 2021. CTS is a system of clearing cheques electronically.
Considering making it mandatory
The RBI has said that though it is up to the account holder to avail the facility, banks may consider making it mandatory for clearing cheques of Rs 5 lakh and above. PNB said that from next month, positive payment system will be made mandatory for clearing cheques of Rs 10 lakh and above.
Re-verification of required information
Positive payment system has been prepared by the National Payments Corporation of India (NPCI). Under this arrangement, customers issuing high value cheques are required to re-verify certain essential information. Those details are reconciled before settlement of the cheque for payment.
Customers will have to share details like account number, cheques number, cheques alpha code, date of issue, amount, beneficiary name for settlement of high value cheques under PPS. According to the bank, “Cheques which are registered under PPS will only be accepted under the dispute resolution mechanism.”
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