In a bid to curb cheque frauds in the country, the Reserve Bank of India is introducing new cheque payment rules that would come into effect from January 2021.
RBI has called for the implementation of a new ‘positive pay system’ for payment through cheques. Under the new system, banks will require to re-confirm key details for payments beyond Rs 50,000.
Here is all you want to know about Positive Pay System
The whole idea behind the introduction of Positive Pay involves a process of reconfirming key details of large value cheques.
The system will require an issuer of the cheque to electronically submit (through channels like an app, SMS, internet banking, ATM, etc) certain details of that cheque like date, name of the beneficiary/payee, amount, etc. to the drawee bank. The details provided will further be cross-checked at banks by CTS to ensure additional security.
The whole process will be regulated by the National Payments Corporation of India (NPCI). NPCI shall develop the facility of Positive Pay in CTS and make it available to participant banks.
The banks will have to enable the system for people issuing cheques for Rs 50,000 and above. Only cheques that are compliant with the instructions will be accepted.
Also, reports suggest that while availing this facility would solely be the decision of the account holder, but banks will mandatorily ask for the aforementioned details when the cheque amount is Rs 5 lakh and above.
The RBI meanwhile has also urged banks to create awareness about the new system among the account holders for their convenience and financial safety.