ATTENTION PNB customers! Now You Have To Do THIS While Submitting HIGH-VALUE Cheque

New Delhi:  In a move to safeguard customers from fraudulent payment of cheques, state-owned Punjab National Bank (PNB) has made the Positive Pay System (PPS) compulsory for cheque payments worth Rs 5 lakh and above. This will come into effect from April 5, 2023, PNB said in a statement. Earlier, the mandatory submission of cheque details in PPS was set at Rs 10 lakh and above.

The PPS is a system developed by the National Payments Corporation of India (NPCI), which requires customers to reconfirm essential details (account number, cheque number, cheque alpha code, issue date, amount, and beneficiary name) when issuing cheques of a certain amount, it said. (Also Read: Will ChatGPT Take away Your Job? Here's What Infosys Founder Narayana Murthy Think)

This adds an extra layer of security against any potential risk while processing such cheques, it said. Customers can use the PPS facility by providing the cheque details through the Branch office, Online Banking for individuals and businesses, Mobile Banking (PNB ONE), or SMS Banking, it said, adding, the details to be submitted one working day prior to cheque presentation/clearing date. (Also Read: SBI Fixed Deposit Scheme: THESE Investors Can Earn Up To 7.9% FD Rate)

As per Reserve Bank of India (RBI) guidelines, PNB had introduced PPS for cheques of Rs 50,000 and above presented in CTS clearing from January 1, 2021. RBI had recommended that availing this facility is at the account holder's discretion and banks may consider making it mandatory for cheques of Rs 5 Lakh and above.

The cheques that are registered in the PPS will only be accepted under the dispute resolution mechanism, it said.

For the unversed, RBI introduced a Positive Pay System for the cheque of Rs 5 lakh or above previously. The cheque clearance system came into effect on August 1. Many banks including SBI have implemented this system to safeguard against cheque fraud. As per the new updates, customers have to follow the new rule for cheques of Rs 5 lakh or above to be encashed.