High Value Cheque Transactions To Be Made Safe Via Positive Pay Mechanism

To augment the safety of cheque payments, RBI in its bi-monthly monetary policy meet has announced the decision to introduce a framework of Positive pay for all cheques worth Rs 50,000 and above. Operational guidelines on the same will be issued separately.

High Value Cheque Transactions To Be Made Safe Via Positive Pay Mechanism

Under the system, processing of cheques for payment by the drawee bank will be done based on the information provided by the customer at the time of issuance of cheque. So, herein an account holder would share cheque details such as cheque number, cheque date, payee name, account number, amount etc. together with the picture of both the front and back side of the cheque even before handling it over to the beneficiary.

And when the beneficiary submits the cheque to the bank for encashment, the cheque details will be matched with the details provided by the bank customer via Positive Pay. Upon successful verification, cheque will be honoured.

The move will cover about 20 percent and 80 percent of total cheques issued by volume and value, respectively.

The new system is being considered to reduce fraud via tampering of cheques.

GoodReturns.in