Public sector Punjab National Bank (PNB) will settle cheques of valued Rs 10 lakh or more from April 4 onwards only after re-verification from the issuer. According to the news of PTI, PNB on Tuesday said that this step has been taken to protect bank customers from the possibility of fraud in case of large amount cheques. Under this, Positive Payment System (PPS) will be necessary from April 4, 2022.

This system came into effect from January 1, 2021

According to the news and guidelines of the Reserve Bank of India, the system of CTS (Cheque Truncation System) clearing of Rs 50,000 and above was implemented from January 1, 2021. CTS is the mechanism of clearing of cheques electronically. RBI has said that though it is up to the account holder to avail the facility, banks may consider making it mandatory for clearance of cheques of Rs 5 lakh and above.

NPCI has prepared the system

PNB said that from next month, a positive payment system will be made necessary for the clearance of cheques of Rs 10 lakh and above. This system has been prepared by the National Payments Corporation of India (NPCI). Under this arrangement, customers issuing high value cheques are required to re-verify certain essential information. Those details are reconciled before settlement of the cheque for payment.

These details have to be given

Customers will have to share details such as account number, cheque number, cheque alpha code, date of issue, amount, beneficiary name for settlement of high value cheques under PPS. According to the bank, only cheques that are registered under PPS will be accepted under the dispute resolution mechanism.