In a move to protect customers from large value cheque frauds, Punjab National Bank (PNB) on Monday announced that it has made Positive Pay System (PPS) mandatory for the cheque of Rs 10 lakhs and above effective from April 4.
As per the Positive Pay System (PPS) developed by the National Payments Corporation of India (NPCI), a 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 like account number, cheque number, cheque alpha code, issue date, amount, and beneficiary name for clearing the high-value cheques under PPS.
These details are to be shared with the bank at least 24 working hours before the cheque is presented for clearing. Customers can share the details through internet banking, mobile banking, SMS banking, or their home branch in the prescribed format.
The cheques that are registered in the PPS will only be accepted under the dispute resolution mechanism, PNB said in a statement.
"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, which has now become mandatory for the cheques of Rs 10 lakh and above from today," PNB said.
RBI had recommended that while availing of the facility is at the account holder's discretion, banks may consider making it mandatory for cheques of Rs 5 lakh and above.
( With inputs from ANI )
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