Positive Pay System: RBI is making major changes on check payments, will be applicable from next year
new Delhi. The Reserve Bank of India (RBI) is soon going to change the check payment norms to curb banking fraud. Under this, on payment of Rs 50,000 or more, customers will have to share some personal information with the bank. For this, the use of Positive Pay System will be taken. This will give all the details of sending and receiving checks to the bank accurately. Which will make it easier to verify. However, whether customers want to take advantage of this facility or not will depend on them. Under the new system, RBI is considering making this arrangement mandatory for 5 lakh or more ammunition. This system will be implemented from next year.
What is positive pay system
This is a system in which the person issuing the check will have to give some information related to the check to the bank through SMS, mobile app, Internet banking or ATM. This will include the date of the check, the beneficiary’s name, the payee and the payment amount, etc. Under the positive pay system, the details of such checks will be crosschecked, so that there is no possibility of disturbances. During this time, if any fault is found, then it will be marked by the Check Truncation System. Its information will be given to Droi Bank (the bank in which the check is to be paid) and the presenting bank (the bank from which the check is issued).
NPCI will develop the system
The National Payments Corporation of India (NPCI) will work to develop a positive pay system. This will add these new facilities in CTS and connect other banks with it. According to the central bank, the positive pay system will come into effect from 1 January 2021. To make people aware about this, RBI has advised banks to use voice features.