What To Know About The Positive Pay System For Cheques?
Updated: 28-01-2025 at 6:43 AM
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To prevent cheque fraud, the Reserve Bank of India (RBI) introduced a positive pay system. This system provides cheques with an extra level of security making sure the item is not fake before clearing.
Read More: RBI Introduces Faster Cheque Clearing Process: Closing In On NEFT And RTGS Speed
How Does Positive Pay Function?
The cheque issuer is expected to include some information like the cheque number, date of issue, payee’s name, account number and amount. For the positive pay system, such information should be communicated to your bank through online means or mobile apps.
The bank then compares this information with the actual cheque when it’s presented for payment. Hence, if there are no matchings that will prevent the clearing of the cheque thus avoiding any chances of fraud.
How To Use The Cheque Positive Pay System?
Although individual banks have their variations on it, the fundamental process remains consistent across the board. Here’s how:
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Indian Bank Positive Pay System: Indian Bank customers can input their cheque data via online platforms or mobile apps to activate such things as Indian Bank Positive pay systems.
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Bank of India Positive Pay System: Similarly, Bank of India users can enter cheque details using their online banking or mobile app under the Bank of India Positive Pay system.
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Axis Bank Positive Pay System Online: Axis Bank has provided a simple-to-use web-based interface where clients may lodge their cheque details about those found in Axis Bank Positive pay systems online.
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BOB Positive Pay System: BOB customers can use either their smartphones by opening the nearest branch or accessing internet banking to register cheques under the Bob Positive Pay system.
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Canara Bank Positive Pay System: Canara Bank customers need to access their internet banking or mobile app to get involved in such services as the Canara Bank Positive Pay System.
Read More: Understanding RBI's New Master Directions on Fraud Risk Management
Why Is The Pay Positive System Important?
The importance attached to this issue cannot be overstated as it serves to protect both the cheque issuer and the payee from fraudulent activities. Banks can thwart unauthorised transactions by checking that all details related to cheques are correct before clearing them, thus heightening the security and trust of account holders.
Read More: Next-Gen Reforms To Look Out For In Union Budget 2024
Steps To Register Cheque Details Online
Follow these simple steps if you are going to utilise positive pay systems:
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Log into your bank’s internet banking or mobile app: Ensure you have your login details with you.
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Find the 'Positive Pay System' option: This is generally found under ‘Cheque Services’ or ‘Payments.’
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Enter cheque details required: Enter the relevant cheque number, date, payee name, amount and account number.
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Submit the information: Supply all required data regarding this matter.
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Confirmation: The bank will confirm these details, thereby securing your cheque through positive pay systems.
Read More: Understanding CIBIL Score: RBI Rules And How They Affect Your Credit?
Conclusion
A positive pay system is a must-have for every regular user of cheques. You can avoid fraud while making secure transactions by recording cheque details with your bank. Several banks including Indian Bank Positive Pay System, Axis Bank Positive Pay System Online, Bank of India Positive Pay System, and Canara Bank Positive Pay System have made it easy for their customers to access this facility via their websites.
To protect your financial transactions, make sure to register your cheques using the positive pay system offered by your bank.
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