To prevent check forgery, the Reserve Bank of India (RBI) will move to a positive pay practice in cheque transactions from January 1, 2021. Under the ‘positive pay’ system, a customer who issues the cheque clicks a picture of the cheque before handing it over to the beneficiary and uploads the same on the bank’s mobile application.
To enhance safety of cheque payments, for all cheques of value Rs 50,000 and above, the positive pay mechanism will be followed.
The limit of Rs 50,000 will cover approximately 20 per cent of transactions by volume and 80 per cent by value, he said, adding operational guidelines in this regard will be issued soon.
Customers will be able to share picture of cheques through SMS, mobile applications or ATMs.
By following such a system, a bank knows of a cheque being drawn by the customer even before it is deposited by the beneficiary into the…
