Earlier this year, the Reserve Bank of India (RBI) rolled out the ‘Positive Pay’ system concerning cheque payments. As per the new rule, re-confirmation of certain key details will be needed for making a payment which is more than Rs 50,000.
The objective of the ‘Positive Pay’ system is to identify fraudulent activity. The tool identifies fraudulent information by matching specific details with respect to the cheque, which is presented for clearing. Cheque details which will be used for matching include cheque date, cheque number, account number, payee name, cheque amount, and other information versus a list of cheques which were authorised and issued by an issuer previously.
Also Read: Will Contactless Banking Be the New Normal? Get Your Answer Here
Following are the pointers you need to be aware of when it comes to the new rule for cheque payments:
For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in
Bhavana is a Senior Content Writer handling the GST vertical. She is committed, professional, and has a flair for writing. When away from work, she enjoys watching movies and playing with her son. One thing she can’t resist is SHOPPING! Her favourite quote is: “Luck is what happens when preparation meets opportunity”.
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