PNB to make high-value cheque verification system mandatory from April
Premium- The lender said Positive Pay System will now become mandatory from next month for the cheques of Rs10 lakh and above
MUMBAI : In a move to protect bank customers against cheque frauds, Punjab National Bank (PNB) on Tuesday said it will make Positive Pay System (PPS) mandatory from 4 April for large transactions.
As per Reserve Bank of India (RBI) guidelines, PNB had introduced PPS for cheques of ₹50,000 and above presented in CTS clearing from 1 January 2021. The lender said PPS will now become mandatory from next month for the cheques of ₹10 lakh and above.
Under the Positive Pay System (PPS) developed by the National Payments Corporation of India (NPCI), a customer issuing the high-value cheque has to reconfirm some essential details which are cross-checked while presenting the cheque in clearing before payment.
PNB customers need to share details like account number, cheque number, cheque alpha code, issue date, amount, beneficiary name. These details are to be shared with the bank at least 24 working hours before the cheque is presented for clearing. Customers can share the details through its internet banking, mobile banking, SMS banking or in their home branch in the prescribed format.
The cheques that are registered in the PPS will only be accepted under the dispute resolution mechanism, the bank said.
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Last year, RBI had issued guidelines to the banks to implement PPS system to safeguard customers from the fraudulent collection of high-value cheques. It instructed banks to enable the facility for all account holders issuing cheques for amounts of ₹50,000 and above. It had also said that while availing of the facility is at the account holder’s discretion, banks may consider making it mandatory for the cheque values of ₹5 lakh and above.
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