The Reserve Bank of India has introduced that it'll launch “Positive Pay System” for Cheque Truncation System from 01st January, 2021. The “Positive Pay System” will likely be developed by the National Payments Corporation of India (NPCI) and make it accessible to participant banks. Banks will likely be required to allow the system for all account holders issuing cheques for quantities of Rs 50,000 and above. While availing of this facility is on the discretion of the account holder, banks could think about making it necessary in case of cheques for quantities of Rs 5,00,000 and above.
The RBI had introduced the Positive Pay mechanism to be able to stop frauds with excessive worth cheques. Under this mechanism, cheques will likely be processed for fee by the drawee financial institution primarily based on info handed on by its buyer on the time of issuance of cheque. Banks are suggested to create enough consciousness amongst their prospects on options of Positive Pay System by means of SMS alerts, show in branches, ATMs in addition to by means of their web-site and web banking.
Important takeaways for all aggressive exams:
- RBI twenty fifth Governor: Shaktikant Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.