The RBI has decided to introduce a positive payment system from January 1 to avoid fraud. Based on this, checks with payment of more than Rs 50,000 will be re-examined. The bank may make this arrangement mandatory for checks amounting to Rs 5 lakh and above.
The RBI will implement the new rule
A change in the rules of check payment will come from January 1
Special measures taken by RBI to prevent fraud
This information must be provided
Based on the positive payment system, the check issuer will have to provide some information about the check through electronic means like SMS, mobile app, internet banking or ATM. It should give the date, name of the beneficiary, recipient and amount.
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Action will be taken if the information is different
This will be confirmed by checking it before passing the check. If an error or change is detected, it will be reported to the check transaction system. The issuing bank and the presenting bank will have to provide the information and then steps will be taken to reject it.
This rule can be applied to more than Rs 5 lakh
The National Payments Corporation of India will develop a positive payment facility and provide it to the participating banks. The RBI said the bank would then apply it to account holders for payments of Rs 50,000 and above. Account-holders will decide to avail this facility. The bank can do this in case of an amount of Rs 5 lakh or more.
The central bank said the positive payment system would come into effect from January 1, 2021. Banks will have to inform the customers about this with the help of SMS. It will have to provide information on branches, ATMs as well as website and internet banking.