Bank News: If you are an Axis Bank customer then there is important news for you. If you use the Axis Bank checkbook, then you must read this news. With effect from September 1, 2021, the system of check clearing in Axis Bank is changing. Axis Bank has informed its customers about this by SMS. Positive pay details will have to be given one working day before the check is cleared from September 1. Failure to do so will result in your check being returned.
Automated Fraud Detection Tool
It is worth noting that from January 1, 2021, the new Positive Pay System has been implemented for checks in the country. Positive Pay System is an automated fraud detection tool. RBI said that the purpose behind the implementation of this rule is to tighten the noose on the misuse of cheques. The bank has sent SMS to the customers for this. In an SMS sent to customers, Axis Bank said, “From September 1, 2021, checks of Rs 5 lakh or more will be returned, if you do not provide positive pay details before one working day from the check clearing date.”
What is Positive Pay System?
Positive Pay System is to provide protection against fraud in the clearing of checks under the check truncation system. Check Truncation System is a process of clearing cheques. This makes the process of collection of checks faster. National Payment Corporation of India (NPCI) is providing positive pay facilities in Check Truncation System (CTS) to banks. This system will be applicable on payment through checks of 50 thousand or more amount.
How does Positive Pay System work?
Through this system, check information can be given through SMS, mobile app, internet banking, and ATM. These details will be re-verified before making payment of the cheque. If any discrepancy is found in it, the bank will reject that check. Here if there is a case of two banks i.e. the bank whose check has been deducted and the bank in which the check has been inserted, then both will be informed about this.