InvestorQ : What is RBI positive pay and what is it getting effective in India?
shrinidhi Rajan made post

What is RBI positive pay and what is it getting effective in India?

2 years ago

Here is what you need to know about the Positive Pay system introduced by the RBI.

· It is a system that has been introduced to protect the interests of the person who is drawing the cheque to prevent misuse.

· The new Positive Pay system of the RBI goes live from 01 January 2021 and to begin with it will be optional for cheques above the value of Rs.50,000.

· Under the new rules a double re-confirmation of key details will be required for payments above Rs.50,000, which must be uploaded online.

· This is a second level of safety check and is expected to lower the incidence of fraud in cheque payments and reduce the number of cheque litigations.

· Positive Pay basically requires the account holder issuing the cheque to upload all details of the cheque like cheque number, date, payee name, account number etc online.

· Such details will then be verified before clearing the cheque. In case of any discrepancy, the RBI will make it mandatory for the account holder to reconfirm details.

To begin with, Positive Pay is at the discretion of the account holder, but RBI may make it mandatory for cheques valued above Rs.50,000 at a future date.