Reserve Bank of India (RBI) had announces introduction of Positive Pay System for Cheque Truncation System (CTS). The concept of Positive Pay involves a process of reconfirming key details of large value cheques. Under this process, the issuer of the cheque submits electronically, through channels like SMS, mobile app, internet banking, ATM, etc., certain minimum details of that cheque (like date, name of the beneficiary/ payee, amount, etc.) to the drawee bank, details of which are cross checked with the presented cheque by CTS. Any discrepancy is flagged by CTS to the drawee bank and presenting bank, who would take redressal measures.
Positive Pay System shall be implemented from January 01, 2021.
National Payments Corporation of India (NPCI) shall develop the facility of Positive Pay in CTS and make it available to participant banks. Banks, in turn, shall enable it for all account holders issuing cheques for amounts of ₹50,000 and above. While availing of this facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheques for amounts of ₹5,00,000 and above.
Only those cheques which are compliant with above instructions will be accepted under dispute resolution mechanism at the CTS grids. Member banks may implement similar arrangements for cheques cleared / collected outside CTS as well.
Banks are advised to create adequate awareness among their customers on features of Positive Pay System through SMS alerts, display in branches, ATMs as well as through their web-site and internet banking.
(Also read: Divorced daughter will be entitled to receive Family Pension)
(Also read: GST Revenue collection for September, 2020)
(Also read: Faceless Appeals launched by CBDT)
(Also read: Revised instructions on opening of Current Accounts)
(Also read: File complaint if any detail on product package is not legible or missing)
(Also read: First RRTS train of India to run between Delhi-Meerut with modern features)
(Also read: No requirement of scrip wise reporting in ITR for day trading and short-term sale or purchase of listed shares)
Disclaimer: The above post includes some content used from RBI website and executed on this website for fair use only. As this website is of educational nature, hence the content is used for education and awareness to the public.