In the digital age, the Reserve Bank is constantly taking steps to curb banking fraud. In this episode, there is going to be a big change in the rule of check payment. This change will take place from January 1. From January 1, 2021, if you pay more than Rs 50 thousand through check, you will have to follow the positive pay system. Through this, large paid checks will be rechecked so as to prevent fraud. RBI has asked all banks to make customers aware before January 1 of the new check rules. Customers will be informed about this through SMS alerts, ATMs and online banking and by displaying them in the branch.
What is positive pay system?
The positive payment system that the Reserve Bank is going to implement in the check payment system with a Zarvari 2021 is an automated fraud detection tool. This system will protect against fraudulent payments. Under this, the person issuing the check will have to re-issue the check issuing date, check number, recipient, account number and recipient and the amount as well as all the details related to the check through electronic means. Crosschecking these information will ensure that everything is fine.
How will it work?
On January 1, 2021, the positive pay system will be applicable for payment of check above Rs. 50 thousand. The issuer of the check will then return the details associated with the check through electronic means such as Internet banking, ATM, SMS and mobile apps. This detail will be uploaded in the centralized positive pay system. When the bank receives this check, the check will be verified. Payment will be canceled if the details do not match.
Some Important Points To Remember :
- Payments above 50 thousand rupees will be applicable
- Taking advantage of the facility at the will of the account holder
- Banks can make mandatory on payment of five lakh or above
- This system will secure check payments by cross checking