A cheque, or check is a document that orders a bank to pay a specific amount of money from a person’s account to the person in whose name the cheque has been issued.
Here are the things to know about new rule for cheque payments in India
1) The idea of Positive Pay includes a cycle of reconfirming key subtleties of enormous worth checks.
2) Under this cycle, the backer of the check submits electronically, through channels like SMS, portable application, web banking, ATM, and so on, certain base subtleties of that check (like date, name of the recipient/payee, sum, and so on) to the drawee bank, subtleties of which are cross checked with the introduced check by CTS. Any error is hailed by CTS to the drawee bank and introducing bank, who might take redressal measures.
3) National Payments Corporation of India (NPCI) will build up the office of Positive Pay in CTS and make it accessible to member banks. Banks, thusly, will empower it for all record holders giving checks for measures of ₹50,000 or more.
4) While availing of this facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheques for amounts of ₹5,00,000 and above.
5) Only those cheques which are compliant with above instructions will be accepted under dispute resolution mechanism at the CTS grids. Member banks may implement similar arrangements for cheques cleared / collected outside CTS as well.
Banks are advised to create adequate awareness among their customers on features of Positive Pay System through SMS alerts, display in branches, ATMs as well as through their web-site and internet banking.