PNB makes Positive Pay System mandatory for check payments worth Rs 5 lakh and above
In a move to safeguard customers from fraudulent payment of checks, State-owned Punjab National Bank (PNB) has made the Positive Pay System (PPS) compulsory for check payments worth ₹5 lakh and above.
This will come into effect from April 5, 2023, PNB said in a statement.
Earlier, the mandatory submission of check details in PPS was set at ₹10 lakh and above.
The PPS is a system developed by the National Payments Corporation of India (NPCI), which requires customers to reconfirm essential details (account number, check number, check alpha code, issue date, amount, and beneficiary name) when issuing checks of a certain amount, it said.
Security against risk
This adds an extra layer of security against any potential risk while processing such checks, it said.
Customers can use the PPS facility by providing the check 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 check presentation /clearing date.
RBI’s recommendation
As per Reserve Bank of India (RBI) guidelines, PNB had introduced PPS for checks of ₹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 checks of ₹5 lakh and above.
The checks that are registered with the PPS will only be accepted under the dispute resolution mechanism, it said.