People who have their accounts in Bank of Baroda will be required to give “positive pay confirmation" to the lender from next month for cheque payments of over Rs 2 lakh. The new rule will come into effect from June 1, and is aimed at preventing financial frauds in cheque transactions.
Bank of Baroda on its official website said the customers can provide the lender “advance intimation" of high-value cheques, so that they can clear them without needing to contact the issuers.
What is Positive Pay System
The Positive Pay system mainly recollects the key details of a high-value cheque from the issuer. A customer can electronically provide the details of a high-value cheque he/she has issued to someone. The details include cheque number, payee name, transaction amount, account number, cheque date, and transaction code.
Key features of Bank of Baroda’s Positive Pay
-While customers will have to mandatorily reconfirm the details of a cheque transaction above Rs 2 lakh, people making payment above Rs 50,000 can also use the Positive Pay System. This means that customers who issue a cheque of value more than Rs 50,000 can reconfirm the details to the lender from June 1.
-There will be no option for customers to modify the details of registered confirmation.
-The cheque will be cleared only if the reconfirmed details match the details on the bank note.
-Confirmations provided to the bank before 6 pm will be meant for the next clearing session. Details given after 6 pm will be taken up for the subsequent sessions.
-Details can be reconfirmed through mobile banking, net banking, SMS, branch visit or by calling the bank’s toll free numbers
-Details must be provided only through one of the modes.
-Customers will receive a reference number on their registered mobile number for every cheque issued after successfully providing the details.