BANKING AFFAIRS

Detailed explanation-1: -The positive pay is currently applicable to cheque value of Rs. 50000/-and above. W.e.f 01.09. 2022, submitting positive pay details in case cheque value 500000/-(Rupees Five Lakhs) and above will be mandatory.

Detailed explanation-2: -The Reserve Bank of India (RBI) has made it mandatory for cheques worth Rs 5 lakh or above to follow the Positive Pay System (CPPS) to be encashed. If the rules are not followed, the banks are allowed to refuse clearance of such cheques.

Detailed explanation-3: -W.e.f. 01.08. 2022, Positive Pay confirmation is mandatory for cheques issued for Rs. 05.00 lacs & above. That means, cheques issued for these values shall be returned in the clearing/Intersol without payment, if positive pay confirmation is not provided on cheque presented on or after 01.08.

Detailed explanation-4: -Positive Pay: To provide customers safety in cheque payments and reduce instances of fraud occurring on account of tampering of cheque leaves, HDFC Bank introduces a mechanism of Positive Pay for all cheques of value ₹50, 000 and above.

Detailed explanation-5: -What is Positive Pay System (PPS)? Under the PPS, which is a component of the cheque clearing system, the drawee bank would process the cheques for payment based on the information provided by the account holder at the time of cheque issue.