In order to keep a check on the banking fraud, the Reserve Bank of India (RBI) has decided to introduce from January 1, 2021, the 'positive pay system' for cheque payments.
Here's everything you need to know about it:
>> Under this system, key details will need to be re-confirmed for payments above Rs 50,000. This will need to be done at the discretion of the account holder.
>> For payments above Rs 5 lakh, banks may consider making it mandatory.
>> The issuer of the cheque, under the positive pay system, will now need to submit minimum details of that cheque like date, name of the beneficiary, payee, amount to the drawee bank, electronically through SMS, mobile app, internet banking or ATM.
>> These details will be cross-checked before the cheque is presented for payment.
>> Redressal measures would be taken in case any discrepancy is flagged by cheque truncation system (CTS) to the drawee and presenting banks.
>> The National Payments Corporation of India (NPCI) will develop the facility of positive pay in CTS and make it available to participant banks. Banks will in turn enable it for all account holders issuing cheques for amounts of Rs 50,000 and above.
>> "Banks are advised to create adequate awareness among their customers on features of positive pay system through SMS alerts, displays in branches, ATMs as well as through their website and internet banking," RBI said.
--It added that only those cheques that are compliant with positive pay system instructions will be accepted under the dispute resolution mechanism at CTS grids.
--However, banks are free to implement similar arrangements for cheques cleared and collected outside CTS.
With inputs from PTI