Positive pay system for cheque payments to come into effect from January 1, says RBI
Mumbai: In order to check banking fraud, the Reserve Bank of India has decided to introduce from January 1, 2021, the 'positive pay system' for cheque, under which re-confirmation of key details may be needed for payments beyond Rs 50,000.
Availing of this facility would be at the discretion of the account holder. However, banks may consider making it mandatory for cheques of Rs 5 lakh and above. Under the positive pay system, the issuer of the cheque will be required to submit electronically, through SMS, mobile app, internet banking or ATM certain minimum details of that cheque.