Many banks are making Positive Pay necessary from August 1, 2022 for cheques issued for Rs 5 lakh above. In case you don’t present Positive Pay affirmation, such cheques will probably be rejected by your banker. But, what’s Positive Pay? Positive Pay is part of the cheque clearing system below which the cheques will probably be processed for fee by the drawee financial institution primarily based on data handed on by the account holder on the time of issuance of cheque.
Positive Pay System entails re-confirming of key particulars of the cheque by drawer to the Bank, which might be cross-checked with the offered cheque on the time of fee processing.
All one must do is share the main points of the issued cheque like Cheque Number, Cheque date, Payee title, Account quantity, Amount and so on together with a picture of the entrance and reverse facet of the cheque, earlier than handing it over to the beneficiary.
When the beneficiary submits the cheque for encashment, the cheque particulars are in contrast with the main points supplied to the Bank by means of Positive Pay. If the main points match, the cheque is honoured. In case of mismatch in cheque particulars, the cheque is referred to you.
One might also go surfing to the web banking or the banking app to compelte the Positive Pay formalities by furningsing the Cheque Number, Cheque date, Payee title, Account quantity, Amount and so on. Effectively, Positive Pay mechanism helps in quick clearing of cheques. Positive Pay additionally goals to stop frauds perpetrated by means of cheque tampering/alteration.
If you might be an SBI account holder, right here’s register for Positive Pay. One must do a one-time registration of their cheque operated account for Positive Pay System by means of any of the branches by submitting an software within the prescribed format. Registration may also be carried out by means of alternate channels like Retail Internet Banking (RINB), Corporate Internet Banking (CINB), Mobile Banking (YonoLite) and YONO (Mobile App).
Positive Pay was launched by RBI in September 2020 for all account holders issuing cheques for quantities of Rs 50,000 and above. RBI had acknowledged that whereas availing of this facility is on the discretion of the account holder, banks might contemplate making it necessary in case of cheques for quantities of Rs 5 lakh and above.
Source: www.financialexpress.com”
