New Delhi: In a move to safeguard customers from fraudulent payment of cheques, state-owned Punjab National Bank (PNB) has made the Positive Pay System (PPS) compulsory for cheque payments worth Rs 5 lakh and above. This will come into effect from April 5, 2023, PNB said in a statement. Earlier, the mandatory submission of cheque details in PPS was set at Rs 10 lakh and above. This adds an extra layer of security against any potential risk while processing such cheques, it said.
As per Reserve Bank of India (RBI) guidelines, PNB had introduced PPS for cheques of Rs 50,000 and above presented in CTS clearing from January 1, 2021. RBI had recommended that availing this facility is at the account holder's discretion and banks may consider making it mandatory for cheques of Rs 5 Lakh and above. The cheques that are registered in the PPS will only be accepted under the dispute resolution mechanism, it said.
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