Banking check rule: If you are going to make payment by check, then this news can be useful for you. In fact, from January 1, 2021, last year, the Reserve Bank had implemented the positive pay system. The Reserve Bank of India had decided to introduce a ‘positive pay system’ for checks in 2020 to prevent banking frauds, which may require certain key details for payments above Rs 50,000. Now gradually all the banks are implementing it at their convenience. Now from tomorrow 4th April, Punjab National Bank (PNB) is going to implement PPS rules.
PNB has said that from April 4, 2022, the positive pay system system will be mandatory. Positive Pay System Confirmation will be mandatory if customers issue checks of ₹10 lakh and above through bank branch or digital channel. Customers have to provide account number, check number, check alpha, check date, check amount and beneficiary name.
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These rules are applicable in banks including SBI, BoB
Earlier, SBI, BoB, BOI, Axis Bank, HDFC Bank, ICICI Bank and other banks have made this system mandatory. Let us know in which bank the positive pay system is being implemented on how many checks.
1. SBI: State Bank of India has implemented a new system for check payment from January 1, 2021. SBI has implemented this for check payments above Rs 50,000 i.e. you will need to re-confirm if the check is deducted more than fifty thousand.
2. BoB: Bank of Baroda’s rules related to check clearance (Positive Pay Confirmation) are effective from February 1. This rule of BoB is applicable on checks of Rs 10 lakh or more.
3. Bank of India (BOI): These rules related to Bank of India checks are effective from January 1, 2021. Confirmation is mandatory in BOI for check clearance of Rs.50,000/- and above. The customer has to provide information including Drawers Account Number, Check Number, Check Date, Amount and Payee’s Name.
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How does Positive Pay System work?
Through this system, check information can be given through SMS, mobile app, internet banking and ATM. These details will be re-verified before making payment of the cheque. If any discrepancy is found in it, the bank will reject the check. Here if there is a case of two banks i.e. the bank whose check has been deducted and the bank in which the check has been inserted, then both will be informed about this.