As per RBI guidelines, Banks have introduced Positive Pay System (PPS) w.e.f. January 1, 2021. To ensure added security, customers need to share the following information (may vary from bank to bank) with their Bank,
pertaining to cheques issued /to be issued by them, for an amount Rs.50,000 & above, through multiple channels of the Bank.
- Account Number
- Cheque Number
- Cheque Amount
- Cheque Date
- Payee/Beneficiary Name
While this was not mandated by banks so far, we understand that some of the banks will be enforcing the same w.e.f. 1st of September 2021. You are requested to contact your Banker(s) to know more about this facility and register for the same as per the defined process of your Bank. Your banker(s) should guide you on the process to communicate the cheque issuance details to the Bank before issuance of cheques for investment(s) in Mutual Funds amongst others.
This information is provided to you to avoid any rejection of cheque(s) during clearance process and associated inconvenience to you in this regard.
Please
click here to view the detailed circular on the 'Positive Pay System'.
Positive Pay System (PPS) for cheques
RBI Circular
