Reserve Bank of India (RBI) will introduce a ‘positive pay system’ for cheque transactions from January 1, 2021. National Payments Corporation of India (NPCI) will make a positive pay system available in participant banks and will be a part of the cheque truncation system (CTS).
As a customer, if you issue the cheque, you have to click a picture of the cheque and upload it on the same bank’s app, ATM or share via SMS before handing it over to the beneficiary.
By this system, the bank knows who the cheque is drawn by and the beneficiary’s name before the latter depositing it.
Hence, the bank can cross-check details of the physical cheque with the photograph before transferring funds. If the details don’t match in the CTS, redressal measures will be taken.
Features of ‘Positive Pay System’!
The positive pay system will be available of cheques of Rs 50,000 and above.
To ensure safety, key details will be re-confirmed for cheques above Rs 50,000 as a part of this system. In the case of transactions above Rs 5 lakh, banks may consider making it compulsory…….Read More>>