As per the positive pay system developed by National Payments Corporation of India i.e. NPCI, the customer issuing the high value check has to re-verify certain required details, which are cross-checked at the time of giving the check in clearance before payment .
In order to protect bank customers from high value check frauds, the country’s second largest public sector bank Punjab National Bank has made Positive Pay System (PPS) mandatory for checks of Rs 10 lakh and above with effect from April 4, 2022.
Is. As per the positive pay system developed by National Payments Corporation of India i.e. NPCI, the customer issuing the high value check has to re-verify certain required details, which are cross-checked at the time of giving the check in clearance before payment .
Information to be given 24 hours in advance
PNB customers will have to share details like account number, check number, check alpha code, date of issue, amount and beneficiary name to clear high value checks under PPS. These details have to be shared with the bank at least 24 hours before the check is presented for clearance.
Customers can share the details in the prescribed format through Internet Banking, Mobile Banking, SMS Banking or through their home branch. Checks registered with PPS will be accepted only under dispute resolution mechanism.
RBI had given instructions
As per RBI guidelines, PNB had introduced PPS for checks of Rs 50,000 and above presented in CTS clearance with effect from January 1, 2021, from today onwards for Rs 10 lakh and above.
Check has become mandatory. RBI had recommended that at the discretion of the account holder while availing the facility, banks may consider making it mandatory for checks of Rs 5 lakh and above.
