The Punjab National Bank (PNB) will implement the Positive Pay System on April 4, 2022. PNB has stated that verification will be required for check payments beginning April 4. These changes have been implemented to ensure the safety of check payments and to prevent bank fraud.
The new system will be applicable on checks of 10 lakhs or more, and PNB has stated that the positive pay system will be mandatory beginning April 4, 2022. If customers issue checks of 10 lakh or more through a bank branch or digital channel, Positive Pay System Confirmation will be required. Customers must provide the following information: account number, check number, check alpha, check date, check amount, and beneficiary name.
What exactly is the Positive Pay System?
Under the positive pay system, the check’s issuer must electronically transmit certain check-related information to the paying bank. This information can be provided via SMS, a mobile app, internet banking, or an ATM.
Read More: This PF account rule will change today, and 6 crore employees will be required to pay tax!
In this case, the check issuer must provide the paying bank with information such as the date of the check, the name of the payee, the amount to be paid, and the check number.
Why would you have to provide check-related information?
The information on the check and the information provided by the check’s issuer will be matched in the Check Truncation System, according to the RBI (CTS). If a discrepancy is discovered between the check and the customer’s information, CTS will return the check to the paying bank. Following that, the paying bank will take corrective action.
