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PNB announces mandatory verification of high value cheques
April 05, 2022
In a move to protect bank clients against large value cheques frauds, Punjab National Bank made the Positive Pay System mandatory for the check of ₹10 Lacs and above from April 4, 2022.
According to the Positive Pay System created by the National Payments Corporation of India, a customer issuing a high-value cheque should reconfirm a few fundamental subtleties, which are cross-checked while introducing the cheque in clearing before payment.
PNB clients need to share details like account number, cheque number, check alpha code, issue date, amount, and beneficiary name for clearing the high-value cheque under PPS.
These details are to be imparted to the bank no less than 24 working hours before the check is introduced for going through. Clients can share the details through web banking, mobile banking, SMS banking, or their home branch in the prescribed format.
The makes sure that are enrolled in the PPS might be acknowledged under the dispute resolution mechanism.
According to Reserve Bank of India rules, PNB had presented PPS for cheques of ₹50,000 or more presented in CTS clearing from January 1, 2021, which has now become mandatory for the cheques of ₹10 lakh or more from today.
RBI had recommended that while availing of the facility is at the account holder’s discretion, banks might think about making it mandatory for cheques of ₹5 lakh and above.
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