Cheque Payment: To enhance the safety of cheque payments, RBI has decided to introduce a mechanism of Positive Pay for all cheques of value Rs 50,000 and above. This will cover approximately 20 per cent and 80 per cent of total cheques by volume and value, respectively. RBI has informed that the operational guidelines in this regard will be issued separately.
The Cheque Truncation System (CTS) for clearing cheques is operational pan-India and presently covers 2 per cent and 15 per cent of total retail payments in terms of volume and value respectively.
The average value of a cheque cleared in CTS presently is Rs 82,000. The CTS-2010 standard specifying minimum-security features on cheque leaves acts as a deterrent against cheque frauds, while standardisation of field placements on cheque forms enables straight-through-processing by use of optical / image character recognition technology.
To further augment customer safety in cheque payments and reduce instances of fraud occurring on account of tampering of cheque leaves, RBI has now decided to introduce a mechanism of Positive Pay for all cheques of value Rs 50,000 and above. Under this mechanism, cheques will be processed for payment by the drawee bank based on information passed on by its customer at the time of issuance of cheque.
ICICI Bank is one bank that has already initiated this mechanism. To safeguard the cheques issued from ICICI Bank Savings account, a new service was introduced on its iMobile application. This service is called Positive Pay and can be accessed under the Services>Cheque Book services menu.
Positive Pay service is currently available for cheques issued from ICICI Bank account which are deposited by the beneficiary through other banks and presented through CTS clearing. The cheque images and information will be available for validation only on the next working day.
Positive Pay Meaning
All one needs to do is share the details of issued cheque like Cheque Number, Cheque date, Payee name, Account number, Amount etc along with an image of the front and reverse side of the cheque, before handing it over to the beneficiary.
When the beneficiary submits the cheque for encashment, the cheque details are compared with the details provided to the Bank through Positive Pay. If the details match, the cheque is honoured. In case of mismatch in cheque details, the cheque is referred to you.