About the Positive Pay System
The Positive Pay System enables an additional security layer to the cheque clearing process wherein the issuer (drawer) of the cheque shares cheque details with the Bank. When the beneficiary submits the cheque for clearing, the presented cheque details will be compared with the details provided to the Bank through Positive Pay. To avail this facility, the account holder (drawer of the cheque) needs to share cheque details at the time of issuance of the cheque(s) for amounts of Rs. 50,000/- and above through channels like SMS, mobile app, internet banking, ATM, etc. The issuer of the cheque submits the details of the cheque to the drawee bank, details of which are cross checked with the presented cheque by Cheque Truncation System (CTS). If any discrepancy is flagged by CTS, the cheque will be returned unpaid after referring to the customers through home branch. The cheque details to be shared as under:
- Account Number (15 digits Bank Account Number)
- Cheque Number (6 digits)
- Cheque Date (Date mentioned on the cheque)
- Cheque Amount
- Name of Beneficiary (Payee’s Name)
Step Involved
Positive Pay details can be submitted by the account holder (drawer) at the nearest Bank branch by filling a simple Positive Pay form or from the convenience of home through Mobile / Internet Banking.
Details shared by the account holder will be validated & updated in Positive Pay data base at National Payments Corporation of India (NPCI).
SMS will be sent to the customer’s registered mobile number, to acknowledge receipt of Positive Pay details.
When cheque is received in CTS inward clearing, the presented cheque details will be compared with the details provided to the Bank through PPS.
In case of data discrepancy, the cheque will be returned unpaid after referring to the customers through home branch.
Channels available to share the Positive Pay details are:
- Branch Channel: Walk in customers can fill in a simple form and submit the details over the counter
- Digital Channel: Following digital modes are available to submit the Positive Pay details from the comfort of your home.
- Mobile Banking
- Retail Internet Banking
- Corporate Internet Banking
Note: Please note that availing of this facility for cheques amounting to Rs. 50,000/- and above is at the discretion of the account holder. However, sharing the cheque details through PPS for cheques amounting to Rs. 500,000/- and above will be made mandatory by the Banks w.e.f. 01.09.2021. In case of non-submission of PPS details by the customers, the cheque with value Rs. 5,00,000/- will be returned to the presenting Bank, when the cheque is presented through CTS clearing.
However, you may avoid abovesaid procedure by adopting mode of payments through RTGS/NEFT to our bank accounts. The details of which can be provided to you at your specific request.
FAQ's
To add an additional layer of safety to the customer and avert fraudulent encashment of cheques through their fabrication, a new service has been introduced as per directives from RBI. Circular is effective 1st January, 2021.
Customers, after issuance of cheques, will provide to the Bank, details of the instruments issued by him on his account with the Bank. The Customer needs to share the cheque details like Cheque Number, Cheque date, Payee name, Account number, Amount to the nearest Branch by updating the cheque details in the Positive Pay Form and counter signing the same.
When the beneficiary submits the cheque for encashment, the cheque details will be compared with the details provided to the Bank through Positive Pay. If the details match, the cheque is honoured, else the cheque will be returned.
Implementing ‘Positive Pay’ will increase safety in cheque payments and will reduce instances of fraud occurring on account of tampering of cheques. Positive Pay is a fraud detection tool adopted by banks to protect customers against forged, altered or counterfeit cheques. It cross verifies all details of the cheque issued before the cheque is encashed by the beneficiary.
The PPS is a step taken to safeguard the cheques issued from alteration/ forgery and avoid any fraud. If Positive Pay facility is not used, any claim raised against the particular cheque will not be accepted under dispute resolution mechanism at RBI.
Availing of the facility is at the discretion of the account holder. However sharing the cheque details through PPS for cheques amounting to ?500,000/- and above will be made mandatory by the Bank w.e.f. 01st September, 2021. In case of non-submission of PPS details by the customers, the cheque with value ?500,000/- will be returned to the presenting Bank, when the cheque is presented through CTS clearing.
Yes. As per RBI regulation w.e.f. 01st January, 2021, Positive Pay details have to be submitted by all the customers issuing cheques for amount ?50,000/- and above.
Yes. You can submit cheque details through the PPS form available at the nearest branch during the branch’s working hours.
Yes. Following digital modes are available to submit the Positive Pay details from the comfort of your home.
- Mobile Banking
- Retail Internet Banking
- Corporate Internet Banking
It is advised to contact your respective bank for detailed process in this regard.
No. Positive Pay facility is provided free of cost to all the customers of Bank.
Through digital mode, Positive Pay details can be submitted 24X7 and for sharing the details over the Bank’s counter you have to adhere to bank’s customer visiting hours.
To enable validation through Positive Pay, cheque detail should be available with the Bank one working day prior to the cheque presentation date as Positive Pay request shall be updated in the bank’s systems after one working day.
It takes one working day for the Bank to update Positive Pay details in system.
No. This is no restriction on the cheque amount. However, sharing the cheque details through PPS for cheques amounting to ?500,000/- and above will be made mandatory by the Bank w.e.f. 01st September, 2021. In case of non-submission of PPS details by the customers, the cheque with value ?500,000/- will be returned to the presenting Bank, when the cheque is presented through CTS clearing.
Sharing the cheque details through PPS for cheques amounting to ?500,000/- and above will be made mandatory by the Bank w.e.f. 01st September, 2021. In case of non-submission of PPS details by the customers, the cheque with value ?500,000/- will be returned to the presenting Bank with return reason description “Positive Pay details not available”, when the cheque is presented through CTS clearing.
Q16. If there is a mismatch or mistake in the details submitted by me, will be cheques be processed?
No. If there is a difference in details submitted by you and the cheque received in clearing, Bank has the right to return the cheque to the presenting bank in CTS clearing.
W.e.f. 01st September, 2021, all the cheques with value ?500,000/- will be returned if PPS details are not available on Bank’s records, as PPS is implemented by RBI on 01st January, 2021.
Yes. SMS will be triggered on your registered mobile number available on Bank’s records confirming the cheque details.
Yes, as RBI has mandated to share the cheque details under Positive Pay mechanism for all the cheques issued by the drawer.
If you have any query please feel free to ask
- Toll Free: 18001020064 (10 am to 6 pm IST)
- For RIs : care@omaxe.com
- For NRIs : nricare@omaxe.com
