Punjab National Bank has made Positive Pay System (PPS) mandatory for cheques of ₹10 lakh and above with effect from April 4.
As per PPS, developed by the National Payments Corporation of India, a customer issuing high-value cheque has to reconfirm some essential details, which are cross-checked while presenting the cheque in clearing before payment. The cheques that are registered in PPS will only be accepted under the dispute resolution mechanism. The move is aimed at protecting the customers against large value cheque frauds, the bank said in a release on Monday.
“PNB customers need to share details like account number, cheque number, cheque alpha code, issue date, amount and beneficiary name for clearing high-value cheques under PPS. The details are to be shared with the bank at least 24 working hours before the cheque is presented for clearing. Customers can share details through internet banking, mobile banking, SMS banking or their home branch in the prescribed format,” the bank said.