Tamil Nadu

Indian Bank makes high-value cheque verification system mandatory

Chennai-based Indian Bank has made the Positive Pay System, a process of reconfirming the key details of large value cheques, mandatory from August 15.

In order to safeguard against cheque frauds, Reserve Bank of India had issued guidelines to the banks to implement this system from January 1, 2021. It told banks to enable the facility for all account holders issuing cheques for amounts of ₹50,000 and above. It has also said that while availing of the facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheque values of ₹5 lakh and above.

Indian Bank said as per RBI guidelines, it had introduced a positive pay system for cheques of ₹2 lakh and above from January 1 and this will now now be mandatory from August 15.

Under the system, developed by National Payments Corporation of India, a customer issuing the high-value cheque has to share some essential details of the cheque issued to the bank. The details are cross- checked while clearing the cheque and any discrepancy is flagged.

Indian Bank said customers need to share details like account number, cheque number, issue date, amount, transaction code, MICR code. These details have to be shared at least 24 working hours before the cheque is presented for clearing, it added.

Indian Bank said customers can share the details through its website, internet banking, and mobile banking or through their home branch in the prescribed format.

RBI has said only cheques that are registered in the Positive Pay System will be accepted under the dispute resolution mechanism.

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Printable version | Sep 24, 2021 6:11:25 PM | https://www.thehindu.com/news/national/tamil-nadu/indian-bank-makes-high-value-cheque-verification-system-mandatory/article35699444.ece

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