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PNB New Rule: Paying Rs 10 Lakh Via Cheque at PNB? Keep This in Mind

PNB has made Positive Pay System mandatory for these transactions

PNB has made Positive Pay System mandatory for these transactions

Positive Pay System has been made mandatory by PNB to protect its over 180 million customers from any security threats.

Public sector lender Punjab National Bank from April 4, 2022, Monday, has implemented the Positive Pay System (PPS) being compulsory for cheque payments worth Rs 10 lakh and above. This is being done as a move to protect its over 180 million customers from any security threats. The bank had announced to make Positive Pay System mandatory last month, and the same has been implemented today. Under the new system, high value cheques worth Rs 10 lakh and above will be cleared using the PPS, after reconfirmation with the issuer of the cheque.

As per the Positive Pay System (PPS) developed by the National Payments Corporation of India (NPCI), a customer issuing the high-value cheque has to reconfirm some essential details. The details are then cross-checked while presenting the cheque in clearing before payment.

PNB said that its customers will need to provide their details including account number, cheque number, cheque alpha code, issue date, amount, beneficiary name before the bank clears high value cheques under the Positive Pay System (PPS).

Positive Pay System will be available for all account holders issuing cheques for
amount of Rs 50000 and above. Availing of this facility will be at the discretion of the account holder. However, only those cheques which are compliant with instructions of Positive Pay System shall be accepted under dispute resolution mechanism at the CTS grids, PNB had said in a statement last year. The PPS had come into effect in January last year for PNB.

These details are to be shared with the bank at least 24 working hours before the cheque is presented for clearing. Customers can share the details through its internet banking, mobile banking, SMS banking or in their home branch in the prescribed format.

“The cheques that are registered in the PPS will only be accepted under the dispute resolution mechanism,” it added.

How to Sumbit High Value PPS Cheque Online

1. Login to PNB net banking system using correct credentials

2. Under the Value Added Services option, click on the Positive Pay System Tab

3. Click on the account number from the dropdown menu, after which issuer name will appear automatically

4. After that customer has to submit six-digit cheque number, cheque alpha (3 character), cheque date, cheque amount (amount should be Rs 50000 and above) and beneficiary name.

5. Now enter the transaction Password and submit

6. On successful submission, customer will receive a message on screen that your
cheque has been uploaded successfully

Last year, the Reserve Bank (RBI) had issued guidelines to the banks to implement PPS system to safeguard customers from the fraudulent collection of high-value cheques.

(With PTI inputs)

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first published:April 04, 2022, 16:23 IST