Mumbai: The Reserve Bank of India (RBI) has changed the rules for high-value check clearing to increase the security of customers in check payments and to avoid fraud through check leaf tampering. RBI has decided to implement a system called ‘Positive Pay’ for all checks above Rs 50000. On the basis of volume and value, 20 percent and 80 percent of the checks, respectively, would come under the purview of RBI’s move. Its operational guidelines will be issued.
The RBI has started this new process. RBI Governor Shaktikanta Das said after informing the decisions taken in the bi-monthly review meeting of RBI’s Monetary Policy Committee (MPC), ‘Positive Pay for all checks of Rs 50,000 or more to make check payments more secure’. The system of ‘will be implemented.’
Know what is ‘Positive Pay’:
It is a type of fraud detection tool. Under this, all the information related to the check is cross-verified before it is encashed. The person issuing the check shares all the information related to the issued check on the bank’s mobile app. If there is no match in the data, the bank contacts the person issuing the check.
How this system works:
The private sector ICICI Bank uses this mechanism. According to the information given on the ICICI Bank website, before giving the check to the beneficiary, you need to check the information on the bank’s mobile application, such as check number, date of check, name of payee, account number, amount and photo of the front and backside of the check. Need to share. After this, when the payee deposits the check, the information given by the check and the issuer is crosschecked through Positive Pay. If the information given by the check issuer and the details associated with the check match, the check is cleared. If the details do not match, the check issuer is contacted.
