- SBI: ‘This new cheque payment rule will come into effect from 1 January 2021’
- State Bank of India is all set to roll out the positive pay system’ for cheques from next month
Country’s top lender State Bank of India (SBI) is all set to roll out the positive pay system’ for cheques. Under the new rule re-confirmation of key details may be needed for payments beyond ₹50,000. This new cheque payment rule will come into effect from 1 January 2021. “As per RBI guidelines, we are introducing Positive Pay System (PPS) w.e.f. 01/01/2021 to ensure added security where the cheque issuer now needs to provide details such as account number, cheque number, cheque amount, cheque date payee name with respect to the cheque payments,” the lender mentioned on its website.
SBI has asked the customers to give their option for Postive Pay System, and in case of any query to contact their nearest branch.
The Reserve Bank of India (RBI) decided to introduce the ‘positive pay system’ for cheque a couple of months ago. The announcement by RBI Governor Shaktikanta Das in August MPC came in order to keep consumer safety in focus and to lower the cases of fraud and abuse with respect to cheque payment.
The central bank had also advised banks to create adequate awareness among their customers on features of Positive Pay System.
What is Positive Pay System
The concept of Positive Pay involves a process of reconfirming key details of large value cheques. Under this process, the issuer of the cheque submits electronically, through channels like SMS, mobile app, internet banking, ATM, etc., certain minimum details of that cheque (like date, name of the beneficiary / payee, amount, etc.) to the drawee bank, details of which are cross checked with the presented cheque by CTS. Any discrepancy is flagged by CTS to the drawee bank and presenting bank, who would take redressal measures.
Earlier, country’s top lender had informed its account holders that they can place a request for a cheque book delivery to any address of their choice. “Use our Internet Banking service and request for a cheque book delivery to any address of your choice in few simple steps,” SBI had tweeted.
