There is going to be a change in a rule related to banking from August 15 it will have a direct effect on you
There is going to be a change in a rule related to banking from August 15. The ‘Positive Pay System’ adopted for high value cheques is being made mandatory from August 15. This arrangement was implemented by the Reserve Bank of India (RBI) with effect from January 1, 2021. Alerts are being issued by banks to the customers this time through different mediums. It is being told that the positive pay system is being implemented on checks of Rs 2 lakh or more.
This arrangement has been implemented by RBI to prevent check fraud. Indian Bank has told customers that as per RBI guidelines, we had introduced ‘Positive Pay System’ from January 1 for checks of value of Rs 2 lakh and above and now it will be mandatory from August 15.
Under this system developed by the National Payments Corporation of India, the customer issuing a high value check has to share certain essential details of the check issued to the bank. The information is cross-checked by the bank while clearing the cheque and any errors are flagged.
Indian Bank said customers are required to share information such as account number, check number, date of issue, amount, transaction code, MICR code. It states that it will be mandatory to share these details at least 24 hours before the check is presented for clearing. Similarly, other banks are also alerting customers.