RBI Mandates Positive Pay System (PPS) w.e.f 1st August 2022
RBI Mandates Positive Pay System (PPS) w.e.f 1st August 2022.
RBI has made it Mandatory for cheques worth Rs. 5,00,000 and above to be encashed should follow the PPS.
if the Rules are not followed Banks are allowed to refuse clearance of such cheques.
Under the PPS , RBI had said that Cheques worth of Rs. 50,000 and above will have to be compliant with the PPS. This rule come into force w.e.f 1st Jan 2021. However it was not mandatory.
Several Banks set the limit for worth Rs. 5,00,000 or above for Mandatory PPS registration w.e.f 1st August 2022
What is mean by PPS? (https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=11969)
The concept of Positive Pay involves a process of reconfirming key details of large value cheques.
Under this process, the issuer of the cheque submits electronically, through channels like SMS, mobile app, internet banking, ATM, etc., certain minimum details of that cheque (like date, name of the beneficiary / payee, amount, etc.) to the drawee bank, details of which are cross checked with the presented cheque by CTS (Cheque Truncation System). Any discrepancy is flagged by CTS to the drawee bank and presenting bank, who would take redressal measures.
Several banks issued issued notifications to help the customers for Complete the PPS formalities. You can refer BOB notification under below link.
BoB issued a notification saying, "As per the RBI directive, Positive Pay System (CPPS) will be mandatory w.e.f. 01.08.2022 for cheques issued for Rs 5 lakh & above. Such cheques will be rejected w.e.f. 01.08.2022 if Positive Pay confirmation is not provided."
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