NEW DELHI, Jan 1: The ‘Positive Pay System’ for cheques which came into effect from Friday will provide enhanced security to payments through cheques above Rs 50,000.
The system was introduced by the Reserve Bank of India in September last year.
Under the positive pay system, an issuer of a cheque for Rs 50,000 and above will have to electronically submit certain minimum details of the particular cheque (such as date, name of the beneficiary, payee and amount) to the drawee bank. This can be done through various channels – SMS, mobile app, internet banking and ATM.
The details provided will then be cross-checked with the presented cheque by Cheque Truncation System (CTS). In case, there is a discrepancy, it will be flagged by the CTS to the drawee bank and presenting bank, who will then take redressal measures.
According to the central bank, the process to begin with will be taken up for high value cheques for amounts of Rs 50,000 and above. While availing this facility will be at the discretion of the account holder, the RBI is contemplating to make it mandatory for the cheques for Rs five lakhs and above, the central bank sources said.
(Manas Dasgupta)
