The Reserve Bank of India vide its notification dated 25th September 2020 has decided to introduce the Positive Pay System for cheques from 1st January 2020, under which re-confirmation of key details may be needed for payments beyond Rs 50,000.
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.
The National Payments Corporation of India will 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 Rs 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 Rs 5,00,000 and above.
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