Positive Payment System on Cheque Truncation System

Effective from January 01,2021 cheques of ₹500000 and above will be compulsorily to be under Positive Pay System and cheques less than ₹500000 will be optional on the part of customer.

Overview

RBI vide its Circular RBI/2020-21/41 DPSS.CO.RPPD.No.309/04.07.005/2020-21 dated September 25, 2020 announced introduction of Positive Pay System for Cheque Truncation System (CTS). To increase customer safety in Cheque payments and to reduce instances of frauds, it has been decided to introduce a mechanism of positive pay for all cheques of value Rs.50000 and above. Under this mechanism, cheques will be processed for payment by the drawee bank based on the information passed by the customer at the time of issuance of cheque.

What is Positive Payment System?

  • The concept of Positive Payment System (PPS) involves a process of reconfirming key details of large value cheques to the Drawee Bank before presentation of the cheques.
  • Under this process, the issuer of the cheque needs to submit electronically certain minimum details of that cheque like date, name of the beneficiary / payee, amount, etc. to the Drawee Bank.
  • Cheque will be passed if the provided details match with the actual cheque presented in the clearing and if otherwise is in order viz. sufficient funds, Signature match etc.

How to give Positive Pay Confirmation?

1. By placing request to Branch

By Submitting request for Positive Pay Confirmation at Home Branch in the prescribed format.

View Format


2. By sending SMS in the prescribed format

Customer has to send SMS to 8082892975 from their registered number in the below format:

PP<space><ACCOUNT NUMBER><space><all the numbers in the bottom of your cheque, in the same order without space & special characters><space> <AMOUNT><space> <cheque date in DDMMYYYY><space><PAYEE NAME Without Special Character>


For example if a customer wishes to confirm positive pay for the following cheque


The SMS should be sent as below.

PP 4010123456789 12345612345678912 55000 01012021 RAHUL RAM


If the customer is not sending the request in proper format, the request will be rejected, and a rejection message will be sent to the customer.

3. Through Internet Banking

All registered retail net banking customers can submit Positive Pay Confirmation through Internet Banking Explore -> General Services -> New Requests -> Operative Accounts -> Positive Pay

Frequently Asked Questions

The concept of Positive Payment System (PPS) involves a process of reconfirming key details of large value cheques to the Drawee Bank before presentation of the cheques. Under this process, the issuer of the cheque needs to submit electronically certain minimum details of that cheque like date, name of the beneficiary / payee, amount, etc. to the Drawee Bank.

Details of all cheques amounting Rs 50,000/-and above need to be submitted to the Drawee Bank under PPS. For Cheques above Rs 50000 and below Rs 5,00,000 this facility can be opted at the discretion of the account holder but is mandatory for all cheques of amount Rs. 5 lakhs & above.

Cheques details which are available in PPS will be accepted under dispute resolution mechanism of the CTS Grids. Non submission of the details under PPS will lead to rejection of the claim under dispute resolution mechanism.

Presently, customers can submit PPS details through KGBnet (Internet Banking), submitting request at Branches or by sending SMS in the prescribed format. Submission of positive pay confirmation through other digital channels will be enabled shortly.

RBI vide its Circular RBI/2020-21/41 DPSS.CO.RPPD.No.309/04.07.005/2020-21 dated September 25, 2020 announced introduction of Positive Pay System for Cheque Truncation System (CTS). To increase customer safety in Cheque payments and to reduce instances of frauds, it has been decided to introduce a mechanism of positive pay for all cheques of value Rs.50000 and above. Under this mechanism, cheques will be processed for payment by the drawee bank based on the information passed by the customer at the time of issuance of cheque.

  • The concept of Positive Payment System (PPS) involves a process of reconfirming key details of large value cheques to the Drawee Bank before presentation of the cheques.
  • Under this process, the issuer of the cheque needs to submit electronically certain minimum details of that cheque like date, name of the beneficiary / payee, amount, etc. to the Drawee Bank.
  • Cheque will be passed if the provided details match with the actual cheque presented in the clearing and if otherwise is in order viz. sufficient funds, Signature match etc.

1. By placing request to Branch

By Submitting request for Positive Pay Confirmation at Home Branch in the prescribed format.

View Format


2. By sending SMS in the prescribed format

Customer has to send SMS to 8082892975 from their registered number in the below format:

PP<space><ACCOUNT NUMBER><space><all the numbers in the bottom of your cheque, in the same order without space & special characters><space> <AMOUNT><space> <cheque date in DDMMYYYY><space><PAYEE NAME Without Special Character>


For example if a customer wishes to confirm positive pay for the following cheque


The SMS should be sent as below.

PP 4010123456789 12345612345678912 55000 01012021 RAHUL RAM


If the customer is not sending the request in proper format, the request will be rejected, and a rejection message will be sent to the customer.

3. Through Internet Banking

All registered retail net banking customers can submit Positive Pay Confirmation through Internet Banking Explore -> General Services -> New Requests -> Operative Accounts -> Positive Pay

The concept of Positive Payment System (PPS) involves a process of reconfirming key details of large value cheques to the Drawee Bank before presentation of the cheques. Under this process, the issuer of the cheque needs to submit electronically certain minimum details of that cheque like date, name of the beneficiary / payee, amount, etc. to the Drawee Bank.

Details of all cheques amounting Rs 50,000/-and above need to be submitted to the Drawee Bank under PPS. For Cheques above Rs 50000 and below Rs 5,00,000 this facility can be opted at the discretion of the account holder but is mandatory for all cheques of amount Rs. 5 lakhs & above.

Cheques details which are available in PPS will be accepted under dispute resolution mechanism of the CTS Grids. Non submission of the details under PPS will lead to rejection of the claim under dispute resolution mechanism.

Presently, customers can submit PPS details through KGBnet (Internet Banking), submitting request at Branches or by sending SMS in the prescribed format. Submission of positive pay confirmation through other digital channels will be enabled shortly.

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