Indian bank positive pay system- Check What is PPS, How does it Work and Other Details

To protect your hard-earned money from cheque fraud, Indian Bank implemented the Positive Pay System for cheques of Rs. 2.00 lakhs and above. Cheques will be processed for payment through Positive Pay based on information provided by you at the time of issuance of the cheque. Here is all you need to know about the Indian bank's positive pay system.

What is a Positive Pay System?

A new service has been introduced in accordance with RBI directives to provide an additional layer of security to customers and to prevent fraudulent encashment of cheques through their fabrication. Customers will provide the Bank with details of the instruments issued on their account with the Bank following the issuance of cheques. The Customer must share the cheque details, such as the Cheque Number, Cheque Date, Payee Name, Account Number, and Amount, with the nearest Branch by updating the cheque details in the Positive Pay Form and countersigning it. Alternatively, the information can be submitted online via Internet Banking.

How does PPS work?

When the beneficiary submits the cheque for encashment, the details on the cheque are compared to the information provided to the bank via Positive Pay. If the details match, the cheque will be honoured; otherwise, it will be returned.

Benefit of PPS?

Implementing 'Positive Pay' will increase the security of cheque payments and reduce instances of fraud caused by tampered cheques. Positive Pay is a fraud detection tool that banks use to protect their customers from forged, altered, or counterfeit cheques. It double-checks all of the information on the cheque before it is cashed by the beneficiary.

How to share PPS details through internet banking?

• Enter your login credentials into Internet Banking and proceed as follows:
• Choose an option >> Services Positive Reward
• Enter the following mandatory information: Select the Account Number, Beneficiary Name (Payee's Name), Cheque Number (6 digits), Transaction Code, Cheque Amount, and so on, and then click SUBMIT.
• To confirm the cheque details, a confirmation screen will be displayed.
• Enter the OTP received and then submit
• The screen will display the appropriate message.