In reference to the introduction of Positive Pay System for Cheque Truncation System (CTS) under Statement on Developmental and Regulatory Policies dated August 6, 2020. RBI explains that the concept of Positive Pay which would involve a process of reconfirming key details of large value cheques. Under this process, the issuer of the cheque submits electronically, through channels like SMS, mobile app, internet banking, ATM, etc., certain minimum details of that cheque (like date, name of the beneficiary / payee, amount, etc.) to the drawee bank, details of which are cross checked with the presented cheque by CTS. In case any discrepancy is flagged by CTS to the drawee bank and presenting bank, who would take redressal measures.
In addition, National Payments Corporation of India (NPCI) would be required to develop the facility of Positive Pay in CTS and make it available to participant banks. Banks, in turn, shall enable it for all account holders issuing cheques for amounts of ₹50,000 and above. 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.
RBI further states that only those cheques which are compliant with above instructions would be accepted under dispute resolution mechanism at the CTS grids. Member banks may implement similar arrangements for cheques cleared / collected outside CTS as well.
Positive Pay System would be implemented from January 01, 2021.