Positive Pay

RBI had issued guidelines for banks to implement this system from January 1, 2021, to safeguard against cheque frauds. Here is all you need to know

The Reserve Bank of India (RBI) had issued guidelines for banks to implement this system from January 1, 2021, to safeguard against cheque frauds. Here is all you need to know:

What is the Positive Pay System?

The Positive Pay System, developed by the National Payments Corporation of India, is a process of reconfirming the key details of large value cheques. Under this system, a person issuing the high-value cheque submits certain essential details of that cheque like date, name of the beneficiary/payee amount etc. to the drawee bank. The details can be submitted through electronic means such as mobile app, internet banking, etc. The details are cross-checked while issuing the cheque and any discrepancy is flagged.

What is the limit on the amount for the system?

RBI has told banks to enable the facility for all account holders issuing cheques for amounts of Rs.50, 000/- and above. It has also said that while availing of the facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheque values of Rs 5,00,000/- and above.

Why is this system important for customers?

Some banks have been telling customers that if the details of large-value cheques are not pre-registered, the cheque will be returned, unpaid. On issuance of a high-value cheque, customers should ensure that details are provided within the timeframe prescribed by the banks for hassle-free clearance. RBI has said only cheques that are registered in the Positive Pay System will be accepted under the dispute resolution mechanism. Customers would get an SMS on whether the cheque is accepted or rejected for any reason.


What are the details of the cheque that must be submitted?

Account number, cheque number, date of cheque, amount, transaction code, beneficiary name, MICR CODE.

How can these details be submitted?

These details can be submitted through the bank’s website or mobile banking app. In case a customer does not use electronic banking services, they can submit the details by visiting bank branches.

What Is Positive Pay System (PPS)? RBI’s Cheque Truncation Electronic System


Issuing high-value cheques just got a lot safer. Effective from January 1st 2021, the RBI has introduced an electronic authentication system called Positive Pay that will allow you share the cheque details with your bank before the bank processes it. This additional security layer is meant to address the rising instances of cheque fraud that have made headlines throughout the past year. As reported by the RBI, the total volume of fraud transactions in India was pegged at Rs. 64,681 crores between April and September 2020 with forged or counterfeit cheques accounting a significant share. So, as perpetrators' methods for counterfeiting cheques turn more sophisticated with each passing day, the launch of Positive Pay is definitely a shot in the arm for banks.

How does Positive Pay work?

According to the RBI, while most retail consumers prefer to use electronic alternatives such as NEFT and RTGS, cheques are still a popular option now. Before you issue a cheque, you need to share cheque details like name of the payee, issue date, and amount and send it to your bank via email. When the cheque is presented to the bank for payment via CTS Clearing, the bank will compare the instrument details received against the details you send. In case of any mismatch, the bank may

review it for suitable action.

Key facts to know about The Meghalaya Co-operative Apex Bank Positive Pay

The Meghalaya Co-operative Apex Bank is fully aware of the risk posed by cheque fraud. Hence, we have put into place a robust process that is fully compliant with RBI guidelines. However, not all cheques will need to undergo verification via Positive Pay. We recommend this process for cheques

with a value of Rs 50,000 and above. 

Positive Pay For Cheque Truncation System
All You Need To Know

Positive Pay:

To provide customers safety in cheque payments and reduce instances of fraud occurring on account of tampering of cheque leaves, MCAB introduces a mechanism of Positive Pay for all cheques of value ₹50,000 and above. Through Positive Pay, 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.

You need to share the following details of the issued cheque at least 24 working hours before the cheque is presented in clearing.

When the payee submits the cheque for realisation via CTS clearing, details (beneficiary name, account no. /cheque no. and cheque amount) will be validated which have been provided to the Bank through Positive Pay.

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In the course of using this website/application or any products and services by The Meghalaya Co-operative Apex Bank Ltd, the Bank may become privy to the personal information of its customers, including information that is of a confidential nature.

The Meghalaya Co-operative Apex Bank Ltd is strongly committed to protect the privacy of its customers and has taken all necessary measures to protect the confidentiality of the customer information and its transmission through the different channels of applications and it shall not be held liable for disclosure of the confidential information when in accordance with this privacy statement or in terms of the agreements, if any, with the customers.

The Meghalaya Co-operative Apex Bank Ltd endeavours to safeguard and ensure the security of the information provided by the customer.The customer would be required to co-operate with the bank in order to ensure the security of the information, and it is recommended that the customers choose their passwords/PIN carefully and make the password/PIN difficult for others to guess.The customers should undertake not to disclose their password/PIN to anyone or keep any written or other record of the password/PIN such that other can access it

The Meghalaya Co-operative Apex Bank Ltd undertakes not to disclose the information provided by the Customers to any person, unless such action is necessary to:

Conform to legal requirements or comply with legal process;

Protect and defend MCAB Ltd rights, interests or property;

Enforce the terms and conditions of the products or services; or

Act to protect the interests of MCAB Ltd,its members, constituents or of other persons.

The Customers shall not disclose to any other person, in any manner whatsoever, any information relating The Meghalaya Co-operative Apex Bank Ltd of a confidential nature obtained in the course of availing any of the applications/services/products. Failure to comply with this obligation shall be deemed a serious breach of the terms herein and shall entitle The Meghalaya Co-operative Apex Bank to terminate the services, without prejudice to recover any damages, to which the Customer may be liable.

The Meghalaya Co-operative Apex Bank Ltd will limit the collection and use of Customer information only on a need-to-know basis to deliver better service to the Customers.The Meghalaya Co-operative Apex Bank Ltd may use and share the information provided by the Customers and third parties for providing services, and notifying or contacting the Customers regarding any problem with, or the expiration of, such services.