Positive Pay System (PPS) - New cheque rule Introduced for PNB Customer

The state-owned Punjab National Bank (PNB) has altered a rule governing cheque payments of Rs 5 lakh or more. The bank has made the use of the Positive Pay System mandatory for cheques of Rs. Ten Lacs and above presented in clearing beginning April 4, 2022. Customers are urged to enter details of cheques worth Rs.10 lacs or more into the Positive Pay System before issuing them for payment in order to avoid the rejection of such cheques in clearing.

What is a Positive Pay System?

The PPS is a National Payments Corporation of India (NPCI) mechanism that requires bank account holders to submit details of a cheque issued by them to the bank where the savings account on which the cheque is drawn is held. These details must be provided before the cheque can be presented for clearance. The bank specifies various methods for submitting cheque details. When issuing cheques of a certain amount, the PPS requires customers to reconfirm essential details such as account number, cheque number, cheque alpha code, issue date, amount, and beneficiary name. This provides an additional layer of protection against any potential risk while processing such checks.

How to avail PPS for PNB cheques?

Customers can use the PPS facility by submitting the cheque details through a branch office, Online Banking for individuals and businesses, Mobile Banking (PNB ONE), or SMS Banking, according to the company, who added that the details must be submitted one working day before the cheque presentation/clearing date.

As of January 1, 2021, PNB had implemented PPS for cheques of Rs. 50,000 and above presented in CTS clearing. PNB had implemented PPS for cheques of Rs 50,000 or more presented in CTS clearing beginning January 1, 2021. Under the dispute resolution mechanism, only cheques registered with PPS will be accepted.

How to avail the facility of Positive Pay System Internet Banking?

• Log in with your PNB NetBanking credentials.
• Under Value Added Services, select the Positive Pay System tab.
• The following screen will appear after clicking on the Positive Pay Services tab:
• When you choose the Account Number from the drop-down menu, the issuer's name will appear automatically. Following that, the customer must provide a six-digit cheque number, cheque alpha (3 character), cheque date, cheque amount (at least Rs.50000/-), and beneficiary name.
• On successful submission, the customer will see a message on the screen indicating that their cheque has been successfully uploaded.
• Enter the password and then Submit.
• Following a successful submission, the customer will see a notice on their screen confirming that the PPS information for the cheque was successfully submitted.

How to avail the facility of Positive Pay System through SMS?

Customers can use the Positive Pay System service by texting the following message to 9264092640 or 5607040.

• Account Number: The complete account number
• Cheque Number: A six-digit check number (numerical value)
• Cheque Alpha: three characters printed on the check
• Amount of Cheque: Rs.50000/- and above (only numerical value)
• Cheque Date (in DDMMYYYY)

On successful submission, the customer will receive the message "Your request for PPS data of cheque No. XXXXX in Account No. XXXXXXXXXXXXXXXX has been accepted."

How to avail the facility of Positive Pay System through PNB ONE?

• After successfully logging into PNBONE, the Positive Pay System screen will appear under the cheques tab.
• The customer must fill out all of the required information, including the six-digit cheque number, cheque alpha (3 character), cheque date, cheque amount (amount must be Rs.50000/- or greater), and beneficiary name.
• A confirmation message will appear on screen once your cheque has been successfully uploaded.