The Punjab National Bank, one of the leaders among the public sector banks of India has decided to make Positive Pay System (PPS) mandatory from the 4th of April 2022. It has been a move towards the protection of the bank’s customers against large value cheque frauds.
As per the Reserve Bank of India guidelines, PNB had introduced the Positive Pay System for cheques of Rs. 50 Thousand and above presented in CTS clearing from the 1st of January 2021. These will now become mandatory for the cheques of Rs. 10 Lacs and above.
As per the Positive Pay System, which has been developed by the National Payments Corporation of India , any customer issuing the high-value cheque has to reconfirm some essential details which are cross-checked while presenting the cheque in clearing before payment. PNB customers need to share details including their account number, cheque number, cheque alpha code and issue date. The amount and beneficiary name will also be verified. These details are to be shared with the bank at least 24 working hours before the cheque is presented to the branch for clearing. Customers can share these details through via internet banking, mobile banking, SMS banking or in their home branch in the prescribed format. Only the cheques that are registered in this system will be accepted under the dispute resolution mechanism.
