What is Positive Pay System?
The Positive pay system is a measure taken by the RBI Reserve Bank f India to enhance the safety of cheque transactions this system is already implemented as of January 1, 2021. under this system, the issuer of a cheque has to electronically submit some minimum details of the cheque (date, name of the beneficiary, account, and payee) to the drawee bank(i.e, your bank).
This can be done by various sources of the channel it can be done either by
internet banking, mobile app, SMS, or Cheque deposit machine.
After which all the detail send by the issuer is cross varied by the bank and then will be sent to the next process
that is the issue of the money, if in any of the case the detail doesn’t match the transactions will be canceled and
further, will we be notified to the account holder immediately.
Is it applicable for all cheques?
No this process not done each and every cheque transaction it is only applicable on the cheque valuing above on and
The main reason for implementing this system is to enhance the safety of the customers.
Is it for all bank accounts?
According to the RBI guidelines, all the banks are to follow this method as of January 2021, and only those cheque to be
allowed which follow all the instructions as per the bank’s guidelines, if not the cheque will be canceled, and the charges
on the cheque bounce will be collected by the customer.
But it will only be applicable to those cheques which carry the amount of 50,000 and above.
Banks shall enable it for all account holders issuing cheques for amounts of Rs 50,000 and above. While availing of this
facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheques for
amounts of Rs 5,00,000 and above.
What happens in case of a dispute?
According to the RBI, only those cheques will be accepted if there are any details to be found missing from the banks,
the full authority to cancel the check. So the responsibility falls moreover under the hands of the customer to follow
all the instructions and guidelines as well besides the banks.
All the above facilities and transaction is being developed and overseen by the National Payments Corporation of India (NPCI).
National Payments Corporation of India will develop the facility of Positive Pay in CTS (Cheque Truncation System)
and it will be made available to all the banks.
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