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.

Click Here to Login

 Frequently Asked Question ll Terms & Conditions ll