State Bank of India, the country's top lender, has announced the launch of 'Positive Pay System' for cheques from the coming year. Positive Pay System or PPS is being implemented to keep banking frauds in check. With the roll-out of PPS, customers will have to re-confirm their key details for payments exceeding Rs50,000.
The Bank's move comes after RBI Governor Shaktikanta Das had announced the system to take customers' safety to a new level and prevent bank frauds. In September, RBI advised banks across the country to launch PPS for cheques.
On its website, SBI said, "As per RBI guidelines, we are introducing Positive Pay System (PPS) w.e.f. 01/01/2021 to ensure added security where the cheque issuer now needs to provide details such as account number, cheque number, cheque amount, cheque date payee name with respect to the cheque payments."
The system will come into effect from January 1, 2021.
State Bank of India was trading at Rs274.70 per piece down by Rs3.2 or 1.15% on the BSE.
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