Mumbai. The Reserve Bank of India (RBI) is bringing a new system from January 1, 2021 to check banking fraud. RBI has named it ‘Positive Pay System’. Under this, some important information will have to be confirmed again on payment of Rs 50,000 or more through check payment. However, it will depend on the account holder whether he avails this facility or not. But it is possible that banks should make this facility mandatory for payment of 5 lakh or more through check.
How will positive pay system work?
Under the positive pay system, the person who will issue the check, they will have to re-inform about the date of the check, the name of the beneficiary, the payee and the payment amount etc. through electronic means.
The person issuing the check can give this information through electronic means such as SMS, mobile app, Internet banking or ATM.
After this, these information will be cross-checked before check payment. If any defect is found in it, then by marking it by the ‘Check Truncation System’, the drawee bank (the bank in which the check is to be paid) and the presenting bank (the bank from which the check is issued). Information will be given. The RBI has said that necessary steps will be taken in such a situation.
The National Payment Corporation of India (NPCI) will develop a new facility in CTS for positive pay system. After this it will be made available to all banks.
Emphasis on making people aware
The RBI has stated that the positive pay system will be implemented from 1 January 2021. Also, banks have been advised to increase awareness enough to give information about these features to the people. Banks can do this through SMS alerts, displays in branches, ATMs, websites and Internet banking.