PNB to use 'Positive Pay' system for cheques above Rs 5 lakh from April 5 — How it works

Punjab National Bank (PNB) will introduce the Positive Pay System (PPS) for cheque payments above Rs 5 lakh from April 5, 2023. In an SMS sent to its customers, the lender said, “Usage of Positive Pay System for cheque of Rs 10 lakh and above presented in clearing is already mandatory, now it will be mandatory for cheque of Rs 5 lakh and above w.e.f. 05-04-2023. Pls use PPS to prevent any fraudulent cheque transaction in your account."

The positive pay system has already been made mandatory by several other banks for cheques issued for Rs 5 lakh and above.

Positive pay is a fraud-prevention system offered by most commercial banks to companies to protect them against forged, altered and counterfeit checks. It acts as an added layer of security.