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In a move to safeguard customers from fraudulent payment of cheques, state-owned Punjab National Bank (PNB) has made the Positive Pay System (PPS) compulsory for cheque payments worth Rs 5 lakh and above.
This will come into effect from April 5, 2023, PNB said in a statement.
Earlier, the mandatory submission of cheque details in PPS was set at Rs 10 lakh and above.
The PPS is a system developed by the National Payments Corporation of India (NPCI), which requires customers to reconfirm essential details (account number, cheque number, cheque alpha code, issue date, amount, and beneficiary name) when issuing cheques of a certain amount, it said.
This adds an extra layer of security against any potential risk while processing such cheques, it said.
Customers can use the PPS facility by providing the cheque details through Branch office, Online Banking for individuals and businesses, Mobile Banking (PNB ONE), or SMS Banking, it said, adding, the details to be submitted one working day prior to cheque presentation/clearing date.
As per Reserve Bank of India (RBI) guidelines, PNB had introduced PPS for cheques of Rs 50,000 and above presented in CTS clearing from January 1, 2021.
RBI had recommended that availing this facility is at the account holder’s discretion and banks may consider making it mandatory for cheques of Rs 5 Lakh and above.
The cheques that are registered in the PPS will only be accepted under the dispute resolution mechanism, it said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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