India's largest lender State Bank of India (SBI) has started the 'positive pay system' for cheques. The re-confirmation of key details will be needed for payments beyond Rs 50,000 under the new rule. From January 1, this new rule came into effect.
SBI mentioned on its website, "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."
In a bid to check banking frauds, the Reserve Bank of India (RBI) had asked banks to start a 'positive pay system' for cheques from January 1.
SBI's new rule for cheque payments - All you need to know
-A process of reconfirming key details of large value cheques under new rule of 'Positive Pay'.
-The issuer of the cheque will be required to submit certain details to SBI either through SMS, mobile app, internet banking or ATMs under the process.
-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 RBI had directed the National Payments Corporation of India to make a facility available to Indian lenders by which they can link directly to the CTS to verify data quicker.
Through the bank's internet banking, SBI account holders can place a request for a cheque book delivery to any address of their choice online.