Bank of Baroda has made 'Positive pay confirmation' mandatory for cheque payments starting from today. The public sector lender has said that the customers will have to make the reconfirmation of cheque details when the amount to be processed is more than Rs 2 lakh.
Here are key things to know about the new rule:
What is ‘Positive Pay’?
Positive pay is a fraud-prevention system offered by most commercial banks to companies to protect them against forged, altered and counterfeit checks.
What does it mean for customers?
The introduction of 'Positive Pay' means that an added layer of security has been provided to the instrument. While issuing a high-value cheque, one can upload its details (such as front and back images) to the bank. When the bank receives the cheque from the beneficiary, it will verify the details uploaded.
A reference number will be shared on the registered mobile number for each successful submission of 'Positive Pay' confirmation. Customers have to ensure that they maintain sufficient funds up to the presentment/payment of the issued cheque/s either confirmed or not.
What kind of customers will have to do it in the case of Bank of Baroda?
While customers will have to mandatorily reconfirm the details of a cheque transaction above Rs 2 lakh, people making payments above Rs 50,000 can also use the 'Positive Pay' system.
Is there any option available for modification?
There is no option for modification or deletion of a registered confirmation in any mode as the data will be submitted to NPCI. Customers can, however, stop the payment of issued cheques at any point of time before its presentment/payment is in CTS clearing or at the counter.
When will the cheque be passed?
The 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.
Confirmations through all/any mode submitted/verified up to 06.00 PM (daily) will only be forwarded to NPCI for the next clearing session.
(Edited by: By Jomy Jos Pullokaran)
First Published: IST