InvestorQ : What is RBI’s positive pay system for cheque payments above Rs 50,000?
Dhwani Mehta made post

What is RBI’s positive pay system for cheque payments above Rs 50,000?

Answer
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Khushi Patel answered.
3 weeks ago


To prevent fraud in the banking sector, RBI has decided to put on stricter regulations for cheque payments through the ‘positive pay system’. This would be applicable from January 1, 2021. These are the highlights of the system:

  1. Key-details will be required to be re-confirmed for payments above Rs 50,000 at the discretion of the account holder.
  2. However, for payments above Rs 5,00,000 banks may consider making it mandatory.
  3. Under this system, the issuer of the cheque will need to submit electronically minimum details of the cheque like the name of the beneficiary, date, payee, amount, etc. to the drawee bank through internet banking, mobile app, SMS, or ATM.
  4. These details shall be cross-checked by the bank before accepting the cheque.
  5. Redressal measures will be taken in case any discrepancy is flagged by the cheque truncation system.
  6. The National Payments Corporation of India (NPCI) will also develop the facility to make it available for the partner banks and in turn, banks will enable it for account holders to issue cheques for amounts above Rs 50,000.
  7. RBI has also advised banks to create awareness among the customers/account holders on features of a positive pay system through SMS alerts, websites, internet banking, and other modes.