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Positive Pay System


     

    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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M P Naveen Chandra

Author pursued the Bachelor of Commerce from Nizam College, Hyderabad. He articulates his interests for informative purposes.

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