Positive Pay System A positive pay system is a measure by the Reserve Bank of India to prevent frauds that occur through check payments in the form of tampering or alteration of checks. The drawer of the check re-verifies the key details of the check which can be cross-checked at the time of presentation of the check during the process of payment. If the check details provided through Positive Pay matches the details of the check presented, the payment is processed, otherwise, the check is returned.

range

Ensures security of positive pay Fund And hence it is desirable to use the facility for payment using cheque. some banks made mandatory for Supervision 50,000 and above for verification through positive pay system. Some banks have kept the facility optional.

positive salary statement

For positive pay, the issuer or issuer of the check has to submit the customer’s account number, check number, date of the check, amount and beneficiary name.

process

The above details need to be submitted by the account holder through the registered email id or by visiting the branch or through internet banking/ mobile banking. For seamless payment to the beneficiary, these details should ideally be furnished by the payee a day before the presentation of the cheque. Once the details are received by the bank, these are cross-checked and verified with the check instrument presented and then the payment is processed.

pay attention

The details filled for positive pay should be in English.

It is a good idea to use alternative third-party payment methods like RTGS or NEFT to transfer high-value funds.

Content on this page is courtesy of Center for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.