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New Delhi: According to reports, Punjab National Bank (PNB) will only clear cheques amounting to Rs 10 lakh or more only after reconfirmation from the issuer. The Positive Pay System (PPS) will be implemented from April 4, 2022. The bank said that the step is being taken to protect customers against banking fraud.
PNB in a release said that the PPS will now become mandatory from the next month for the cheques of Rs 10 lakh and above. The PPS system was introduced on January 1, 2021, first for cheques worth Rs 50,000 or more. However, the facility was not mandatory then.
Last year, the Reserve Bank (RBI) had issued guidelines to the banks to implement the PPS system to safeguard customers from the fraudulent collection of high-value cheques. The fraudulent practices have seen a rising trend in the last few months.
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. The details are then cross-checked while presenting the cheque in clearing before payment.
According to PNB, its customers will have to share details like account number, cheque number, cheque alpha code, issue date, amount, the 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 in their home branch in the prescribed format.
(With PTI Inputs)
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