Bank of Baroda: Bank of Baroda has made some changes in its Cheque payment rules. Bank of Baroda has told its customers that from August 1, the positive pay system will be mandatory for payment of checks with an amount of Rs 5 lakh or more. In its absence the payment of Cheque can be stopped.
Bank gave information
Bank of Baroda said in a tweet that we are committed to your banking security. With Positive Payment System, we protect you from Cheque fraud. From 1st August 2022, Positive Pay System (BOB Positive Pay System) will be mandatory for the amount of Rs 5 lakh or more.
what is positive pay system
National Payments Corporation of India (NPCI) has developed PPS under which a customer issuing a high denomination Cheque is required to share certain essential details such as Cheque number, check amount, date and beneficiary name. These details are cross-checked while presenting the Cheque for payment.
Cheque reject if found fault
The Cheque issuer can provide the required details through electronic means like SMS, mobile app, internet banking or ATM. After this, these information will be cross checked before payment of the Cheque . If any discrepancy is found, the bank will reject the cheque. Here if there is a case of 2 banks i.e. the bank whose Cheque has been deducted and the bank in which the Cheque has been inserted, then both will be informed about it.
What are the guidelines of RBI
The Reserve Bank of India (RBI) had issued guidelines to provide the facility of PPS for checks of Rs 50,000 and above. The central bank has asked to consider making it mandatory for checks above Rs 5 lakh.
