SBI to implement new cheque payment system from next month
State Bank of India aka 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.
"Keeping all your transactions safe including those done via Cheques. SBI is introducing a Positive Pay System from 1st January 2021 to make Cheque payment secure," SBI tweeted.SBI has asked the customers to give their option for a Positive 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 done 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.
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, the 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 a few simple steps," SBI had tweeted.