CURRENT AFFAIRS

Detailed explanation-1: -The positive pay system will be implemented from January 1, the central bank said. It added that the “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".

Detailed explanation-2: -Some banks have made it mandatory for cheques with the value of Rs 50, 000 and above to go through verification via a positive pay system. For the positive pay, the drawer or issuer of a cheque needs to submit customer’s account number, cheque number, cheque date, amount and the beneficiary name.

Detailed explanation-3: -W.e.f. 01st February, 2022, Positive Pay confirmation will be mandatory for cheques issued for Rs. 10.00 lacs & above. That means, Rs. 10.00 lacs & above issued cheques shall be returned in the clearing/Intersol without payment, if positive pay confirmation is not provided.

Detailed explanation-4: -As per Reserve Bank of India directives, Bank has implemented Positive Pay System (PPS) for all modes of cheque payments (Cash/Transfer/Clearing) effective from 01.01. 2021. This is a measure for prevention of frauds perpetrated through cheque tampering/alteration.

Detailed explanation-5: -Why PPS? RBI had mentioned in its circular earlier in 2020 “To further augment customer safety in cheque payments and reduce instances of fraud occurring on account of tampering of cheque leaves, it has been decided to introduce a mechanism of Positive Pay for all cheques of value ₹50, 000 and above.