Reserve Bank of India (RBI) has asked all banks to introduce the Positive Pay System effective 01 January, 2021.

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Positive Pay System:

Positive Pay System enables an additional security layer to the cheque clearing process wherein, the issuer of the cheque submits cheque details as per the process mentioned below. When the beneficiary submits the cheque for clearing, the presented cheque details will be compared with the details provided to the Bank through Positive Pay.
To avail this facility, the account holder (drawer of the cheque) needs to share cheque details at the time of issuance of the cheques for amounts of INR 50,000/- and above.
Cheque details as under:
• Cheque Date
• Name of beneficiary/payee
• Amount
• Cheque number
These details can be submitted by the account holder at the nearest branch by filling a simple Positive Pay form.
• Insufficient and incorrect details may lead to cheque return.
• To enable the validation through Positive Pay, the cheque detail mentioned above should be available with the bank one working day prior to the cheque presentation date.
• Only cheques that are compliant with the Positive Pay System will be accepted under RBI dispute resolution mechanism between the presenting and paying banks.
• Availing of this facility for cheques amounting to INR 50,000 and above is at the discretion of the account holder. It is recommended that the account holders avail the facility for all cheques of INR 5,00,000 and above.

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