Positive pay system RBI is introduced to provide an extra layer of security to the instruments presented in bank cheque clearing process. Customer has to update details of high value cheque issued to bank through online or offline mode and in absence of this high value cheque may get rejected during bank cheque clearing process. In this article you will get to know complete details on Positive pay system of RBI which is mandatory in all banks from 1st January 2021.
Positive pay system RBI | PPS system in banking
Positive pay system RBI is mandatory for all banks hence customer has to provide details of cheque issue to bank in order to avoid rejection in bank cheque clearing process. This System is optional for cheques below five lakh rupees and is mandatory for cheque above rupees five lakhs. Which means banks will definitely reject high value cheque clearing of amount above five lakh rupees if positive pay system (PPS system) mandate is not give in bank.
Complete details of Positive pay system RBI
- Bank will seek Positive Pay system confirmation for high value cheque clearing issued for an amount of rupees 50000 and above.
- The Customer agrees and understands that he may choose to avail the facility of Positive Pay system RBI by submitting the Positive Pay Registration Mandate( positive pay system RBI is option for cheque up to 5 lakh rupees and mandatory for cheque above 5 lakhs).
- The customer agrees and understands that Positive Pay Registration Mandate should be submitted by the customers through available channels like Mobile Banking, Internet Banking, Bank Website and Branches or on different channel from time to time. It will be the responsibility of customers to provide the cheque details post issuance & before presentation in bank Cheque clearing process.
- Positive payment system RBI is only mandatory for high value cheque clearing and for cheque below the value of rupees 500000 (Five Lakhs Only) the customer may choose to give PPS system mandate at their sole discretion as an additional due diligence.
- Once the customer have availed positive pay system RBI facility. Customer has to provide the PPS system confirmation for cheque presented in clearing process. In absence of confirmation in PPS system, Bank will not honor the cheque.
- Confirmation for each of the successful submission of Positive Pay system RBI mandate will be sent on registered mobile number of the customer.
- Stale Cheque will not be accepted even if customer have send confirmation through positive pay system.
- The Customer agree that all authorized signatories/ signatory as per the operational instructions in the account have to sign the confirmation form for providing confirmation through any Branch in India. Original Confirmation
- Form will only be accepted by Branches. Scanned images. Fax. Xerox copy, print of soft copy, email requests etc. will not be accepted by Branches.
- The customer understand that confirmations through all/any mode submitted/ verified upto 6.00 PM daily will only be forwarded to NPCI for next clearing session. Afterwards, all the confirmations will be processed for subsequent clearing session.
- The customer understand that Cheque will be passed if provided details in PPS system matched with the actual cheque presented in the clearing and if otherwise in order viz. Sufficient fund, signature match etc.
- Bank reserve the right to reject/retum the cheque, if there is any mismatch in the information provided in positive payment system RBI and the corresponding details on the Cheque.
- Bank reserves the right to reject/return the cheque, if the facility is not used while issuing the cheque for high value cheque clearing i.e. cheque for Rs 5.00 Lakh and above.
- The customer have to ensure that sufficient funds are maintained in account until the bank cheque clearing process completes (cheques(s) either confirmed or not)
|Cheque Amount||Positive pay system RBI|
|Above 500,000 rupees||Positive pay mandate is mandatory ( cheque will get return in the absence of PPS system mandate )|
|50000 to 500,000 rupees||Positive pay mandate is optional ( but once opted for PPS system it become mandatory every time you issue cheque of value more than 50000 rupees)|
|Below 50000 rupees||Positive pay mandate is not required.|
Frequently Asked Questions on Positive pay system RBI | PPS system in banking
What is PPS system in banking?
PPS system in which customer has to provide details of cheque issued by him to bank through any mode for example channels like Mobile Banking, Internet Banking, Bank Website and Branches or on different channel from time to time.
What is Positive pay system in banking?
Positive pay system in banking or PPS system in banking both are same. Positive pay system in banking is introduced to provide an extra layer of security to the instruments presented in bank cheque clearing process. Customer has to adopt Positive pay system mandatorily for high value cheque clearing(above Five lakh) and it is optional for cheque below five lakh.
The customer agrees and understands that Positive Pay Registration Mandate should be submitted by the customers through available channels like Mobile Banking, Internet Banking, Bank Website and Branches
How to enable positive pay system?
Customer have to give mandate to bank on a mandate for for adopting Positive pay system. Once customer opt for PPS system he has to provide confirmation of each cheque before issue of cheque for bank cheque clearing process. Mandate form is available at each bank.
What if you don’t give Positive pay system mandate?
For high value cheque clearing positive pay system RBI mandate is mandatory i.e. cheque above Five lakh rupees. For cheque between fifty thousand to five lakh rupees PPS system is optional and for cheques below fifty thousand no requirement for positive pay system mandate.