Positive Pay System PPS: Keep these things in mind before paying by cheque, new rules have been implemented

Positive Pay System PPS: If you use checks more in your financial transactions, then this thing is of your use. The rules for payment by cheque have changed in the country. On the instructions of the Reserve Bank, banks are implementing a positive pay system for payment by cheque. Punjab National Bank (PNB) is going to implement the Positive Pay System-PPS rule from April 4.

Punjab National Bank (Punjab National Bank-PNB) is going to make changes in the positive pay system. The bank has given this information on its website and social media platform Twitter. From April 4, under the new rule, customers will have to compulsorily verify the positive pay system for making payments of Rs 10,00,000 or more through cheque.

For a positive pay system, bank customers are required to give their account number, cheque number, cheque alpha, date of the cheque, amount of cheque, in whose name the cheque is being deducted, etc. to the bank. A cheque will not be paid without verification of the Positive Pay System.

More information about Positive Pay System can be obtained from the Punjab National Bank website or by calling toll-free number 1800-180-2222 or 1800-103-2222.

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Other banks have also implemented

This rule, much more public and private banks have implemented this rule before Punjab National Bank. Positive Pay System has been implemented in the State Bank of India (SBI), Bank of Baroda (BoB), Bank of India, Axis Bank, HDFC Bank, and ICICI Bank. In the State Bank of India, this rule is applicable from January 1, 2021. SBI has implemented this for cheque payments above Rs 50,000. The rules related to Positive Pay Confirmation in Bank of Baroda are applicable from 1st February.

What is Positive Pay System

The country’s central bank, the Reserve Bank of India, decided to introduce a ‘positive pay system’ for cheques in the year 2020 to prevent banking fraud. Certain key information may be required for payment of more than Rs 50,000 through cheque under this system.

Through Positive Pay System, check information can be given through message, mobile app, internet banking or through ATM. These details are checked before making payment of the cheque.