If you have an account with Punjab National Bank (PNB), this news is for you. If you make payments by cheque, you no longer have to worry about fraud. To protect its crores of customers from fraudulent activities, PNB has implemented a new cheque payment system. The Positive Pay System (PPS) has now been made mandatory for cheque payments of Rs 5 lakh or more.
It is necessary to provide cheque details in PPS.
The public sector bank has taken this step to protect customers from fraudulent cheque payments. In a statement from PNB, it was mentioned that this change started on April 5, 2023. Previously, it was required to provide cheque details in the Positive Pay System (PPS) for payments of Rs 10 lakh and above. The statement explained that PPS is a system developed by the National Payments Corporation of India (NPCI). Under this system, customers must confirm the necessary details when issuing a cheque for a certain amount.
Additional Security to Avoid Risk
The details required include the account number, cheque number, cheque alpha code, date of issue, amount, and name of the beneficiary. This provides extra security to reduce the risk of fraud when paying large cheque amounts. The bank stated that customers can avail of this facility by providing cheque details through branch offices, online banking, mobile banking, or SMS banking.
Facility Available at the discretion of the Account Holder
According to RBI guidelines, PNB had introduced PPS for cheques of Rs 50,000 and above presented in CTS clearing from January 1, 2021. RBI also mentioned that the use of this facility is at the discretion of the account holder. However, banks can make it mandatory for cheques of Rs 5 lakh and above.
What is the Positive Pay System (PPS)?
PPS is a system developed by the National Payments Corporation of India (NPCI). Under this system, customers need to reconfirm necessary details such as account number, cheque number, cheque alpha code, date of issue, amount, and name of the beneficiary when issuing a cheque for a certain amount. The customer must provide all these details to the bank.