Positive Pay is a process of reconfirming key details of large value cheques. Let us understand this concept by below chart
- Banks shall enable this facility for all account holders issuing cheques for amounts of Rs. 50,000 and above.
- It is the discretion of account holder to avail this facility.
- Bank may make it mandatory for the cheques for amounts of Rs. 5,00,000 and above.
- National Payments Corporation of India (NPCI) is responsible for the development of this facility in Cheque Truncation System (CTS) and making it available to participant banks.
- Positive Pay System will be implemented from 01 January 2021.
Glossary
Drawee Bank is the bank in which Issuer of cheque holds the account and from which amount gets debited on clearance of cheque.
Presenting Bank is the bank in which Beneficiary holds the account and presents the cheque for collection.
Cheque Truncation System (CTS) is a Clearing System for Cheques.
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