India’s largest public sector bank, State Bank of India will be implementing Positive Payment System ( PPS ) which will be effective from January 1, 2020. Positive Payment System, will be implemented for cheque and is introduced to curb all frauds and malpractices related to cheques.
According to this system, if the issuer of cheque draws a cheque for a amount obove ₹50000 then the issuer needs to confirm the account details mentioned in the cheques. These can be confirmed by submitting electronically through SMS, mobile app, internet banking, ATM, etc. The details later will be cross checked with the presented cheque by Cheque Truncation System ( CTS ). If any disparity is found then CTS will notify the issue to the drawee bank so that necessary action can be taken accordingly.
According to State Bank of India official website, Positive Payment system has been introduced a couple of months ago as per Reserve Bank of India (RBI) orders. The implementation of this system was announced by RBI Governor Shaktikanta Das in August with a aim to reduce frauds in cheque payment system.
State Bank of India has notified its customers to get in touch with their home branch to give their option for the new cheque payment system or to know more about this system.