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SBI to roll out new cheque payment system from January 1

In August MPC, RBI governor Shaktikanta Das announced this system to keep customers safety in focus and to decrease the cases of crime and fraud with regard to cheque payment.

December 30, 2020 / 09:48 AM IST
State Bank of India (SBI)

State Bank of India (SBI)

 
 
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State Bank of India (SBI) will implement the 'positive pay system' for cheques from January 1, 2021. Re-confirmation of key information will be required for payments beyond Rs 50,000.

SBI said on its website, "As per RBI guidelines, we are introducing Positive Pay System (PPS) w.e.f. 01/01/2021 to ensure added security where the cheque issuer now needs to provide details such as account number, cheque number, cheque amount, cheque date payee name with respect to the cheque payments."

A couple of months ago, the Reserve Bank of India (RBI) took a decision to launch a 'positive pay system' for cheque. In August MPC, RBI governor Shaktikanta Das announced this system to keep customers safety in focus and to decrease the cases of crime and fraud with regard to cheque payment.

Banks were advised by the RBI to build enough awareness among their customers on features of 'Positive Pay System'.

What you need to know about 'Positive Pay System'

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A process of reconfirming important information of large value cheques is known as 'Positive Pay System'. The issuer of the cheque submits electronically, through channels like SMS, mobile app, internet banking, ATM, etc. certain minimum details of that cheque (like date, name of the beneficiary / payee, amount, etc.) to the drawee bank, details of which are cross checked with the presented cheque by CTS under this process. CTS will flag to the drawee bank and present the bank any discrepancy to take redressal measures.
Moneycontrol News
first published: Dec 30, 2020 09:48 am

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