State Bank of India (SBI), India’s top lender is coming up with a Positive Payment System for cheques. For payments above ₹50,000, re-confirmation of key details is necessary under the new rule. This new rule for cheque payment will be effective from 1 January 2021. On the SBI’s website, it is mentioned that as per the Reserve bank of India’s guidelines they are coming up with Positive Pay System (PPS) which will be effective on 01/01/2021. This helps to ensure more security where the cheque issuer needs to provide details such as account number, cheque number, cheque amount, cheque date, and payee name with regards to the cheque payment.
SBI tweeted that keeping all the transactions safe and secure including those done through cheques, SBI is implementing a Positive Payment System (PPS) from 1st January 2021 onwards. SBI has requested their customers to give their option for Positive Payment System and get the necessary information from the nearest branch in case of any queries. This Positive Payment System for cheque was introduced by the Reserve Bank Of India (RBI) two months ago. RBI Governor Shaktikanta Das has announced in Monetary Policy Committee (MPC) in August, came in to exist to keep customer safety and to reduce the fraud and misuse of cheque payments. The central bank has also asked the banks to give proper awareness among their customers on the features of the Positive Payment System.
The Positive Payment System is basically a process of reconfirming the key details of large value cheques. The issuer of the cheque needs to submit electronically the minimum details of that cheque including date, name of the beneficiary/payee, amount, etc either through SMS, mobile app, internet banking, ATM, etc. These are given to the drawee bank where the details are cross-checked with the presented cheque by CTS. If any fault is found, it will be reported to the drawee bank as well as to the presenting bank, who would take redressal measures. SBI, the country’s top lender has informed its account holder that they can process a request for cheque book delivery to any address of their choice. SBI also tweeted that use their internet banking service and request for cheque book delivery to any address of their willingness in a few simple steps.
