Paying a check for more than Rs 50000? Make sure to do ‘this’ thing otherwise Payment will get stuck; See RBI’s New Rules

• Transactions through check will become tamper-free
• What exactly is Positive Pay System?
• What do the RBI rules say?

Personal Finance Positive Pay System : Even in this age of digital transactions, the use of Checks has not completely died out in India. Even today millions of people depend on Checks for property transactions, business transactions or large payments. But there has also been a rapid increase in cases of check fraud, in which money is withdrawn from people’s accounts using methods such as altering the check amount, altering the payee’s name or forging signatures. In the wake of these increasing incidents of fraud, the Reserve Bank of India (RBI) A system has been implemented to make check transactions tamper-free. What is this system “text-align: justify;”> Global Economy Crisis: Signs of a Great Flood! Salaries will not increase but expenses will double; The biggest financial crisis facing the world?

This system is known as ‘Positive Pay System’ (PPS). If you issue a check of ₹50,000 or more and do not use this system, your check may get stuck in the process or may be rejected by the bank.

What exactly is Positive Pay System?

‘Positive Pay System’ is an advanced security layer (security layer) in which the person issuing the check informs the bank in advance of the complete details related to the cheque. These details include check number, date, amount and payee’s name. When that particular check is later deposited in the bank, the bank verifies it against the details already stored in its system. If all the information matches, the payment is approved. But if there is even the slightest discrepancy in the amount, name or date, the check is immediately flagged as suspicious or rejected. In short, this system makes it almost impossible to tamper with the cheque.

What do the RBI rules say?

As per Reserve Bank of India norms, ‘Positive Pay System’ is available and recommended for checks of ₹50,000 or more. Moreover, for checks amounting to ₹5 lakh or more, many banks have made this system mandatory. Major banks like State Bank of India, HDFC Bank, ICICI Bank and Punjab National Bank have strictly implemented these requirements. Some banks even make PPS mandatory for every check above ₹50,000. Additionally, customers also have the option to set their own limits for example, making PPS mandatory for every check above a certain limit like ₹2 lakh or ₹1 lakh.

What information is required for Positive Pay?

When you issue a cheque, you need to provide some necessary details to your bank. This includes the account number, check number, check date, payee name and the amount on the check. You only need to submit this information once; After that, the bank uses the same information to do the necessary verification.

How to use it?

Using ‘Positive Pay’ is extremely easy. After writing and signing the cheque, you need to immediately submit its details to your bank through their mobile app, net banking or SMS. Then, the bank stores these details in the ‘Check Truncation System’. When the check is presented for clearance, the system automatically verifies the details and if the details match, the money is released.

Why is this system important?

Today, check fraud has emerged as one of the most common forms of financial fraud. On many occasions, people suffer losses of lakhs of rupees just because of minor changes in cheques. The ‘Positive Pay’ system effectively eliminates this risk. This system not only protects your funds (money) but also instills confidence in large amount transactions. This system becomes especially important in occasions like property purchase, vehicle transactions or business transactions.

Important points to remember

This system does not apply to checks of less than ₹50,000; But for large sums, ignoring it can be costly. If you fail to complete the PPS process for a large amount, the bank may also refuse to clear the cheque. Above all, ensure that the ‘Positive Pay’ process is initiated immediately after the check is issued, to avoid any delays or complications.

Other people’s war, China’s benefit! China’s ‘Business’ in Iran-America Conflict! Big Dollar Earnings