The country’s big government bank has made new rules regarding cheques and these will be applicable from April, the bank has issued new instructions regarding deposit of cheques.
If your account is also in Punjab National Bank (PNB), then this news is for you. If you pay by cheque, then you will not be cheated. Yes, PNB has implemented a new system of cheque payment to save crores of customers of the bank from fraud. Now Positive Pay System (PPS) has been made mandatory for customers to make cheque payments of Rs 5 lakh or more. This change will come into effect from April 5 next month.
It is necessary to give details of cheque in PPS
The public sector bank has taken this step to protect customers from any fraudulent payments through cheques. In a statement from PNB, it was said that this decision will come into effect from April 5, 2023. Earlier, it was necessary to give the details of the cheque in the Positive Pay System (PPS) for payment of cheques of Rs 10 lakh and above. The statement said that PPS is a system developed by the National Payments Corporation of India (NPCI). Under this, customers have to confirm the necessary details while issuing cheques of a certain amount.
Extra protection to avoid risk
These details include account number, cheque number, cheque alpha code, date of issue, amount and beneficiary name. This provides additional security to avoid any risk while making payment of large amount of cheques. The bank said that customers can avail this facility by giving cheque details through branch office, online banking, mobile banking or SMS banking.
Availing the facility at the discretion of the account holder
PNB had earlier introduced PPS for cheques of Rs 50,000 and above presented in CTS clearing from January 1, 2021, as per RBI guidelines. It was also said on behalf of RBI that it is at the discretion of the account holder to take advantage of this facility. Banks may consider making it mandatory for cheques of Rs 5 lakh and above.
What is Positive Pay System
PPS is a system developed by the National Payments Corporation of India (NPCI). Under this, customers are required to reconfirm necessary details such as account number, cheque number, cheque alpha code, date of issue, amount and beneficiary name etc. while issuing a cheque of a certain amount. In this, the customer has to provide all these details to the bank.
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