Changes from 1st January: There is going to be another change in the banking system from 1 January. A new system will be implemented to stop fraudulent cheques.
Changes from 1st January: There has been another change in the banking system from January 1. A new system has been implemented to cheque fraud through cheque. In this, all cheques of more than 5 lakh rupees are being issued only by positive pay cheque. Not only this, while deducting the cheque, the customer himself informs the bank about the cash (Withdrawal). The bank does its clearance only after matching the information of both the cheque borrower and the cashier.
How to tell the bank
Customers share the details of writing cheques to the bank through SMS, ATM, mobile apps. Banks have to provide this facility at an amount of more than Rs 50,000. Actually the Reserve Bank of India (RBI) has decided to introduce Positive pay cheque to prevent bank fraud. Under this, a cheque with a payment exceeding Rs 50,000 needs to be confirmed again. However, it is up to the account holder whether he takes advantage of this facility or not.
Cheques above 5 lakhs
However, banks can make this arrangement necessary for cheques with an amount of Rs 5 lakh and above. Under the positive pay cheque, the issuer of the cheque has to provide some minimum details about the cheque through electronic means like SMS, mobile app, internet banking or ATM. In this, information has to be given about the date, name of the beneficiary, payee and the amount.
Checking before payment
These details are then matched before the cheque is presented for payment. If any disturbance is found, the information has to be given to the cheque Transaction System (CTS) bank and the bank that made the cheque.
National Payment Corporation of India
The National Payments Corporation of India (NPCI) has developed the facility of Positive Pay cheque and makes it available to banks. RBI said that after that banks can apply it to account holders in case of all payments of Rs 50,000 and above.
Positive Pay cheque mechanism
To protect cheque transactions from fraud, the new system
will tell the bank by writing a cheque under positive pay and the bank will clear the cheque.
Developed countries, such a system, the clearance on sending and detailing the cheque,
these arrangements will be 50 thousand rupees or more. Plan to apply for cheque.
Also Read: Positive Pay System for cheques: Everything you need to know about the new rule for cheque payments
