Cheque Payment Rules To Change From January 1: Here's All You Need To Know - Viral Bake
BusinessViral News

Cheque Payment Rules To Change From January 1: Here’s All You Need To Know

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.

Source – The Finacial Express

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.

Also Read: In Pics: Kashmir Is Getting More & More Beautiful With Every Spell Of Snowfall

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.

Source – Men’s Rights Advocate

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.

Also Read: World Pictures The Great Conjunction As Jupiter & Saturn Flirt In The Night Sky Almost After 400 Years

The RBI meanwhile has also urged banks to create awareness about the new system among the account holders for their convenience and financial safety.

Related Articles

Back to top button

AdBlocker Detected

Please Disable Adblock To Proceed & Used This Website!