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RBI Positive Pay Features, Working to safe guard Customer Cheques using net banking



Reserve Bank of India (RBI) Positive Pay feature to digitally minimize cheque clearing related frauds using net banking 

In the new process, Positive Pay issuers will be able to send all details to their bank in advance, thereby ensuring faster clearance of cheques above Rs 50,000.

All cheques (check) will be processed as per the information sent by the account holder at the time of issuance of cheques.

What is the RBI Positive Pay mechanism?

Banks have adopted Positive Pay, a fraud detection tool to protect customers against forged, altered or counterfeit cheques.

Positive Pay cross verifies all details of the cheque issued before funds are encashed by the beneficiary. In case of a mismatch, the cheque is sent back to the issuer for examination.

The most important thing about Positive Pay is that a bank knows of a cheque being drawn by the customer even before it is deposited by the beneficiary into his/her account.

How will the Positive Pay mechanism work?

Under the Positive Pay feature, the issuer will first share the details of the issued cheque like cheque number, date, name of the payee, account number, amount, and the likes through his/her net banking account.

Along with digital input, an image of the front and backside of the cheque is also required to be shared, before handing it over to the beneficiary.

Now at the time when the beneficiary submits the cheque for encashment, the details are compared with those provided to the bank through Positive Pay.

If the details match, the cheque is honored. However, in the case of mismatch, the cheque is referred back to the issuer.

In this way, any suspicious cheque cannot be cleared at all, and hence, a customer's money can be protected by the bank.


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