The Reserve Bank of India (RBI) has decided to introduce a mechanism of Positive Pay for all cheques of value Rs 50,000 and above as a measure to enhance the safety of cheque payments.
According to reports, Positive Pay will cover approximately 20% and 80% of total cheques by volume and value, respectively.
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The operational guidelines regarding the system will be issued separately, the apex bank said.
For clearing cheques, the Cheque Truncation System (CTS) is operational pan-India and currently covers 2% and 15% of total retail payments in terms of volume and value, respectively.
Currently, the average value of a cheque cleared in CTS is Rs 82,000.
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The CTS-2010 standard specifying minimum-security features on cheque leaves acts as a deterrent against cheque frauds, while standardisation of field placements on cheque forms enables straight-through-processing by use of optical / image character recognition technology.
To further augment customer safety in cheque payments and reduce instances of fraud occurring on account of tampering of cheque leaves,
To increase customers’ safety in cheque payments and reduce fraud that occurs on account of tampering of cheque leaves, the Reserve Bank of India (RBI) has decided to introduce a mechanism of Positive Pay for all cheques of value Rs 50,000 and above.
Under this mechanism, cheques will be processed for payment by the drawee bank based on information passed on by its customer at the time of issuance of cheque, said reports.