To protect customers from large value cheque frauds, the Punjab National Bank (PNB) has made Positive Pay System (PPS) mandatory for all cheques of Rs 10 lakh and above effective from April 4.

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A customer issuing a high-value cheque must reconfirm essential details that are cross-checked before payment. Only the cheques that are registered in PPS will be accepted under the dispute resolution mechanism. PPS is developed by the National Payments Corporation of India.

PNB customers need to share details like account number, cheque number, cheque alpha code, issue date, amount, and beneficiary name before presenting high-value cheques for clearing under PPS. These details are to be shared with the bank 24 working hours before the cheque is presented for clearing. The details can be shared through internet banking, mobile banking, SMS banking, or at the home branch in the prescribed format.

PNB had introduced PPS for cheques of Rs 50,000 and above presented in CTS clearing from January 1, 2021, following Reserve Bank of India (RBI) guidelines. This has now been made mandatory for cheques of Rs 10 lakh and above.

The RBI had recommended that it is at the account holder’s discretion to avail of the service, but banks may consider making it mandatory for cheques of Rs 5 lakh and above.

First Published:Apr 5, 2022 2:23 PM IST