Public sector lender Punjab National Bank from April 4, 2022, Monday, has implemented the Positive Pay System (PPS) being compulsory for cheque payments worth Rs 10 lakh and above.
This is being done as a move to protect its over 180 million customers from any security threats. The bank had announced to make Positive Pay System mandatory last month, and the same has been implemented today. Under the new system, high value cheques worth Rs 10 lakh and above will be cleared using the PPS, after reconfirmation with the issuer of the cheque.
About the Positive Pay System (PPS):
- As per the Positive Pay System (PPS) developed by the National Payments Corporation of India (NPCI), a customer issuing a high-value cheque has to reconfirm some essential details. The details are then cross-checked while presenting the cheque in clearing before payment.
- Positive Pay System will be available for all account holders issuing cheques for amount of Rs 50000 and above. Availing of this facility will be at the discretion of the account holder. However, only those cheques which are compliant with instructions of Positive Pay System shall be accepted under dispute resolution mechanism at the CTS grids, PNB had said in a statement last year. The PPS had come into effect in January last year for PNB.
- These details are to be shared with the bank at least 24 working hours before the cheque is presented for clearing. Customers can share the details through its internet banking, mobile banking, SMS banking or in their home branch in the prescribed format.
