Positive Pay System

The RBI is to introduce the Positive Pay System for large-value cheque transactions (above 50,000 INR) to enhance safety and prevent frauds. It involves reconfirmation of key details of such cheques. The cheque issuer electronically submits certain details of the cheque to the bank via SMS, ATM, mobile app, etc. These are cross checked by the Cheque Truncation System and discrepancies are flagged to the drawee and presenting banks. The facility is to be developed by the National Payments Corporation of India.

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