RBI Rules: Cheque Payment Method to change from 1 January 2021

The Reserve Bank of India (RBI) has taken an important decision to stop bank fraud. The RBI has said that from January 1, 2021, it will introduce a positive pay system for checks. Let’s know about it in detail. Under positive pay system, important details will need to be reaffirmed for checks paid more than Rs 50,000. In this system, the issuer of the check will have to give some minimum details about the check from electronic medium such as SMS, mobile app, internet banking or ATM.

Information will be given in case of discrepancy –

In this, information about date, beneficiary’s name, recipient (pei) and amount will have to be given. These details will be matched before presenting the check for payment. If any discrepancy is found, the information will be given to the paying bank and the presenting bank. Steps will be taken to correct this.

Mandatory on payment over 5 lakhs –

According to RBI, availing this facility will depend on the account holder. However, banks can make this arrangement mandatory for checks with an amount of Rs 5 lakh and above. The central bank said that this system will come into force from January 1, 2021.

Make customers aware –

Banks have been asked to make customers aware about this through SMS. Along with this, banks will give complete information about their branches, ATMs as well as on their website and Internet banking.