Positive Pay System: From today, checks of more than Rs 50,000 will be confirmed twice, find out what will be the responsibility of the check writer.

 Positive Pay System: From today, checks of more than Rs 50,000 will be confirmed twice, find out what will be the responsibility of the check writer.

The new check payment rule will come into effect from January 1, 2021, the SBI said in a statement.  "As per RBI guidelines, we are launching a positive pay system from 01/01/2021 to ensure additional security," the bank said.  The person presenting the check will now have to inform electronically about the date of the check, the name of the beneficiary, the recipient and the amount of payment a second time.

The Reserve Bank of India has launched a Positive Pay System for check payments from today.  The information required for checks above Rs 50,000 will now be confirmed a second time.  The new rule is designed to make check payments safer and prevent bank fraud.

Check information can be given through positive pay system through SMS, mobile app, internet banking and ATM.  This information will be checked a second time before the check is paid.  If there is any discrepancy, the check truncation system will inform both the bank presenting the check and the paying bank.

The RBI said the rule would apply to all payment cases of Rs 50,000 and above.  Under the Positive Pay System, a person presenting a check to a third party will also have to send the information of the check to his bank.

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The system will have to re-confirm the check with payment of more than Rs 50,000.  Check clearance through a positive pay system will also take less time.  The decision to avail this facility will be in the hands of the account holder.  The bank can also make the positive pay system mandatory in case of checks of Rs 5 lakh and above if it so desires.