“POSITIVE PAY” A New Cheuqe Clearance System

Recently,RBI has started new Cheque Clearance System called “Positive Pay System”. This uses Image based Technology along with Optical Character Recognition. Before it, in 2010 RBI has introduced Cheque Truncation System (CTS) which is purely Image based. This CTS system fixed the place of every attribute to be printed on the Cheque leaf. This new system is effective from 01 January, 2021. For the Cheque above Rs 50000/- value this system is voluntary up to limit Rs 500000/- value, after that it is mandatory to use Positive Pay System for Cheque above this limit.

Mechanism:

1. Issuer issues the Cheque.
2. Issuer Capture the details of Cheque and share it on Positive Pay System.
3. Drawer submit the Cheque.
4. Banker cross check the details shared on Positive Pay System for authenticity
5. If found every thing ok, Pay amount to Drawer.

This PPS system of cheque clearance eliminates alteration in cheque once issued. Frauds can be prevented using this system with speedy clearance. Automation in clearance process using Optical Character Recognition Technology. For the complaints and grievances old CTS grid will address issues and resolve it.

Resources:

• RBI Circular On Positive Pay System Click Here