Reserve Bank of India to crack down on banking fraudRBI) Is bringing a new system from 1 January 2021. The RBI has named it ‘Positive Pay System’. Under this, some required information will have to be re-confirmed on payment of Rs 50,000 or more by check. However, it is up to the account holder to decide whether to avail the facility or not. But it is possible that the bank will make this facility mandatory for payment of Rs 5 lakh or more by check.
How will a positive pay system work?
Under the positive pay system, the person declaring the check will have to re-inform the date of the check, name of the beneficiary, beneficiary and amount of payment etc. electronically. The person issuing the check can provide this information electronically through SMS, mobile app, internet banking or ATM.
This information will then be cross-checked before the check payment. If any irregularity is found in it, it will be marked by ‘Check Transaction System’ (CTS – Check Truncation System) and the dry bank and presenting bank will be informed. The RBI said necessary steps would be taken in such a situation.
A new facility in CTS for positive pay system will be developed by National Payment Corporation of India (NPCI). This will then be made available to every bank.
Emphasis on raising awareness
The RBI said the positive pay system would be implemented from January 1, 2021. At the same time banks have been advised to raise awareness enough to inform the public about these features. The bank works SMS alerts, displays in branches, ATMs, Website And can do through internet banking.