Cheque payments rule: The Reserve Bank of India decided a few months ago to introduce a positive payment system for check payments. Under this new system, the payment of an amount of more than 50,000 needs to confirm the key details again. This new rule in payment by check will come into effect from January 1, 2021. This important decision was taken by RBI to curb the fast-growing banking fraud in the country. Let us know what is the positive pay system and what are included in this new rule.
This Cheque payments rule of a positive pay system will come into effect from January 1, 2021. While availing of this facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheques for amounts of Rs 5 lakh and above.
Here is all you want to know about Positive Pay System:
- Positive Pay System shall be implemented from January 01, 2021.
- 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.
- National Payments Corporation of India (NPCI) shall develop the facility of Positive Pay in CTS and make it available to participant banks.
- Banks, in turn, shall enable it for all account holders issuing cheques for amounts of Rs 50,000 and above.
- Only those cheques which are compliant with the instructions will be accepted under the dispute resolution mechanism at the CTS grids.
- Member banks may implement similar arrangements for cheques cleared/collected outside CTS as well.
Banks have been advised by RBI to create adequate awareness among their customers on features of Positive Pay System through SMS alerts, display in branches, ATMs as well as through their website and internet banking.
Mean-while, India’s coronavirus case count rose to 99.06 lakh, while the number of people who have recuperated from the disease surged to 94.22 lakh pushing the national recovery rate to 95.12 percent, according to the Union Health Ministry data updated on Monday. More than 22,000 infections were reported in a day on Tuesday, while the death count rose to 1,43,709 with 354 new fatalities, the data showed.
India currently has a fatality rate of 1.45 percent due to coronavirus. The government has said more than 70 percent of the people recover from COVID-19 with mild or very mild symptoms. Such cases may not even require admission to COVID-19 blocks or dedicated hospitals, the Health Ministry said.