Everything you need to know about the new positive payment system for check transactions – Positive payment: The positive payment system will be launched at the bank starting January 1. What are the changes? | Eisamay

This time the digital desktop: The Reserve Bank of India (RBI) has recently taken several steps to curb bank fraud. You have done a good job. The ‘Positive Payment’ system will be introduced from January 1, 2021 to prevent fraud by bank checks. This rule will apply in case of checks of Rs 50,000 or more. With the new system, only 20 percent of the checks issued in the country today will enter the “positive payment system.” Although it is very important. What is this new ‘Positive Payment’ system?

According to statistics, about 80 percent of the money traded by check in India has a financial value of Rs 50,000 or more. As a result, in terms of financial value, 80 percent of the total value of transactions through checks will go to the positive payment system. In the Positive Pay system, the work of those who write checks worth 50,000 rupees or more is increasing.

Positive payment system: big changes in bank checks from January 1, find out now …
From now on, your responsibility will not end with just verifying the recipient. In addition, the minimum information of the issued check (such as the date, the name of the recipient, and the value of the check) must be communicated to the recipient’s bank electronically via SMS, mobile app, ATM, and internet banking. If the recipient sends the check to their bank for redemption, the bank in question will verify and clear it through the Check Truncation System (CTS). If any inconsistencies are found in the CTS, the check cannot be cashed. In such a case, a specific procedure must be followed to redeem the check.

The National Payments Corporation of India (NPCI) will take the necessary steps to add the Positive Pay facility under CTS. They will make this arrangement available to partner banks. However, banks can accept or clear checks outside of the CTS system if they wish. However, they will have to make similar arrangements, the RBI said.

The Reserve Bank of India has also launched a massive campaign to inform customers about the new positive check payment system. SMS alerts, flexible branch-to-branch services, ATMs, and websites are also promoted through Internet banking. Bank officials hope clients will get used to the Positive Payment system soon, even if they stumble a bit at first. They also think that customers will appreciate it in the interests of the safety of their deposits.

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