The state-owned Punjab National Bank (PNB) has changed a rule regarding cheque payments worth Rs 5 lakh and above. The bank has made the Positive Pay System (PPS) compulsory for the said amount.
This new rule will come into effect next month on April 5, 2023. The move will safeguard customers from fraudulent payment of cheques. Earlier, the mandatory submission of cheque details in PPS was set at Rs 10 lakh and above.
The PPS requires customers to reconfirm essential details including account number, cheque number, cheque alpha code, issue date, amount, and beneficiary name, when issuing cheques of a certain amount, the bank said. This adds an extra layer of security against any potential risk while processing such cheques, it said.
How to use PPS facility?
Customers can use the PPS facility by providing the cheque details through Branch office, Online Banking for individuals and businesses, Mobile Banking (PNB ONE), or SMS Banking, it said, adding, the details to be submitted one working day prior to cheque presentation/clearing date.
As per Reserve Bank of India (RBI) guidelines, PNB had introduced PPS for cheques of Rs 50,000 and above presented in CTS clearing from January 1, 2021.
RBI had recommended that availing this facility is at the account holder’s discretion and banks may consider making it mandatory for cheques of Rs 5 Lakh and above. The cheques that are registered in the PPS will only be accepted under the dispute resolution mechanism, it said.
