On January 1, 2021, the Reserve Bank of India (RBI) will introduce the ‘Positive Pay System’ for cheque transactions above Rs 50,000.
Salient Features of Positive Pay System
- The system involves a process of reconfirming key details of large-value cheques.
- The objective behind this move is o enhance safety and eliminate frauds.
- Under the new system, an account holder will electronically upload the details of the high value cheque through the bank’s net banking system.
- Customers will need to put in a cheque number, issuance date, payee name, account number, amount payable along with an image of the front and reverse side of the instrument.
- Only a match will lead to the drawee’s bank clearing the cheque and in the event of a ‘no match’ scenario, the issuing authority/individual will be contacted for verification, cancellation or withdrawal of the cheque.
- The National Payments Corporation of India (NPCI) will develop the facility of Positive Pay in Cheque Truncation System (CTS), and make it available to participant banks.
- Private sector lender ICICI Bank adopted this feature in 2016 for all cheques respective of the amount. UPSC TEST SERIES
(Reference: Indian Express)
