The State Bank of India will now be introducing a huge change in the cheque payment process for customers – there will now be a positive pay system implemented for cheques.
Read on to find out how the positive cheque payment system works right here!
State Bank Of India Introduces Positive Payment System To Secure Cheque Payment
The new rule for cheque payment states that for payments above Rs. 50,000, customers will need to reconfirm their key details. As per reports, this rule will be brought into effect from January 1, 2021.
SBI confirms the news through a tweet, “Keeping all your transactions safe including those ddone via Cheques. SBI is introducing Positive Pay System from 1st January 2021 to make Cheque payment secure.”
On the website, SBI has stated that the Positive Pay System (PPS) has been introduced in accordance to RBI guidelines and will be effective from 01/01/2021. The website states that this new system will add some more security and make sure that the payment is safe.
The issuer of the cheque will now be required to provide some more details, which include account number, cheque number, cheque amount, cheque date payee name with respect to the cheque payments.
The biggest lender of India has notified their banks to give their option for Positive Pay System and get in touch with their nearest branch in case of any query.
Positive Payment System: How Does It Work?
The Reserve Bank of India had introduced the positive pay system for cheques payment more than a couple months ago.
Under this system, the issuer of the cheque has to reconfirm key details of large value cheques. These can be submitted electronically, through SMS, mobile app, internet banking, ATM, etc., Also, certain minimum details of that cheque (like date, name of the beneficiary / payee, amount, etc.) will be required to be given to the drawee bank. The details will be cross checked with the presented cheque by CTS.
If any discrepancy is flagged by CTS to the drawee bank and presenting bank, redressal measures will be taken.