New cheque payment rule is now in effect from Jan 1, 2021 - What you must not miss knowing

 

New cheque payment rule is now in effect from Jan 1, 2021 - What you must not miss knowing


New RBI Cheque Rule: The Reserve Bank of India (RBI) has introduced a new rule for cheque payments from January 1, 2021. It is called 'positive pay system' for cheques, under which re-confirmation of key details may be needed for payments beyond Rs 50,000.

Availing of this facility would be at the discretion of the account holder. However, banks may consider making it mandatory in case of cheques for amounts of Rs 5 lakh and above.

What is Positive Pay System? What RBI said?

- RBI has said that "banks are advised to create adequate awareness among their customers on features of positive pay system through SMS alerts, display in branches, ATMs as well as through their website and internet banking".- Further, RBI said only those cheques that are compliant with positive pay system instructions will be accepted under the dispute resolution mechanism at the CTS grids.

- Banks, however, will be free to implement similar arrangements for cheques cleared and collected outside CTS.

- 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 Rs 5,00,000 and above

- These details will be cross-checked before the cheque is presented for payment.

- In case any discrepancy is flagged by cheque truncation system (CTS) to the drawee bank and presenting bank, redressal measures would be undertaken

- Under the positive pay system, the issuer of the cheque will be required to submit electronically, through SMS, mobile app, internet banking or ATM certain minimum details of that cheque like date, name of the beneficiary, payee, amount to the drawee bank.

- This directive by RBI is issued under Section 10 (2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007).

- The National Payments Corporation of India (NPCI) will 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 Rs 50,000 and above.



Comments

  1. UnknownJanuary 10, 2021 at 7:56 AM

    Very Good and foolproof system

    ReplyDelete
    Replies
    1. UnknownJanuary 10, 2021 at 2:22 PM

      Don't do any thing to bust up jobs for young don't do any thing in favour of comes people keep on doing new new tricks to haras people only grant favour to capitalist selected

      Delete
  2. UnknownJanuary 10, 2021 at 9:05 AM

    Good

    ReplyDelete
  3. UnknownJanuary 10, 2021 at 11:56 AM

    Good

    ReplyDelete
  4. Sri Aiyer Raju SreenivasanJanuary 10, 2021 at 8:52 PM

    Terrific safety precaution. I welcome this move. Thank you RBI.

    ReplyDelete
  5. UnknownJanuary 10, 2021 at 10:17 PM

    its is baseless system it will further delay cheque payment. Rather above 50,000 cheque should be account payee only and cheque issuer should first inform bank about higher amount cheque to avoid cheque bounce cases .

    ReplyDelete
  6. UnknownJanuary 10, 2021 at 10:28 PM

    Every customer will have mobile app banking

    ReplyDelete
  7. UnknownJanuary 12, 2021 at 6:35 AM

    Will this system gaurantee that scam done by Big shots in banking sector will be totally eradicate?

    ReplyDelete
  8. UnknownJanuary 14, 2021 at 12:56 AM

    This system will further delay cheque payment. More than 50,000 cheque should be account payee only and cheque issuer should be sure that the amount filled in the cheque is available in his account otherwise some penalty should be imposed on the issuer if the cheque bounce .

    ReplyDelete
  9. UnknownJanuary 20, 2021 at 7:10 PM

    most of the business is conducted on credit basis and cheques without date are generally given as surety and for security for credit money . In case of dispute ,Unscrupulous drawers may play a dirty game with the genuine holders of the cheques at the later stage by refusing to send requisite information to the bank .One more problem .........

    ReplyDelete

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