Today I would like to inform you about new information from the Reserve bank of India. The Reserve Bank of India has introduced a new rule for cheque payments from January 1. This system is called the positive pay system. This is for cheques under which re confirmation of key details may be needed for payments beyond Rs 50,000. Banks may consider making it mandatory in case of cheques for amounts of Rs 5 lakh.
Banks should create awareness among their customers on features of a positive pay system through SMS. Under this system the issuer of cheque will be required to submit electronically, sms,mobile apps,ATM.
But could not be executed accurately due to lockdown. From June 1 some banks will implement a positive pay system. Suppose currently you have money in your account.When transferring more than Rs 50,000 by check, you have to sign the check.
When the recipient of the check goes to the bank with the check,they will give money after checking the signature. This is currently being done. But RBI brought the new law, it reduces instances of fraud occurring on account of tampering of cheque leaves.
Positive pay system is to provide customer safety in cheque payments.It increases visibility of check activity and gives greater control over business finances. It increases safety of cheque based transactions. According to this system,an issuer of a check will have to electronically submit minimum details of cheques.
We should send the date,cheque number, to whom it is given, and the amount to the bank.Bank of baroda has been implementing this system since June 1. This system is available for transactions above Rs 50000.