Positive Pay is a concept that entails reconfirming critical data on large-value checks. The issuer of the cheque provides some minimal details of the cheque like date, name of the beneficiary/payee, amount, etc. to the drawee bank via electronic channels such as SMS, mobile app, online banking, ATM, and so on, which are then cross-checked with the presented cheque by CTS.
Any mismatch is reported by CTS to the drawee and presenting banks, which take corrective action.
All account holders issuing cheques for amounts of Rs 50,000 or more must be allowed to use it. While it is up to the account holder whether or not to use this service, banks may explore making it mandatory for cheques worth more than Rs 5,000,000.
How Does Positive Pay Work?
The drawee bank will process cheques for payment depending on the information provided by the client at the time of issuance. When a beneficiary submits a cheque for encashment, the information on the check is matched to the information provided to the drawee bank via Positive Pay. The check is honored if the details match. When there is a discrepancy in check details, CTS alerts the drawee bank and the presenting bank, who then take corrective action.
Most banks would charge an insurance premium fee to provide a double-layer security system with a positive pay system to assist avoid fraud losses and liabilities. Although the system is not yet required, you can choose to use it to avoid any fraudulent behavior while making cheque payments.
How to submit SBI Positive Pay Online through Mobile Banking?
Step 1: Open SBI YONO Lite App
Step 2: Login using credentials
Step 3: tap and open the "Services" section
Step 4: Click on "Positive Pay System"
Step 5: Click on "Cheque Lodgement Details"
Step 6: Select your account number
Step 7: Enter the cheque number, instrument type, date of issue of cheque, cheque amount
Step 8: Submit details.
How to submit Positive Pay in SBI through Online?
Step 1: Log in to SBI net banking
Step 2: Click on Cheque Book Services
Step 3: Click Positive Pay Services
Step 4: Select your account number
Step 5: Enter the cheque number, instrument type, amount, cheque date, and payee name
Step 6: Submit.
When the beneficiary submits the cheque for encashment after submitting positive pay to SBI, the details of the check are confirmed against the information entered by the customer on the positive pay portal.
Benefits of SBI Positive Pay Cheque process by RBI
Both the issuer and the beneficiary will gain from Positive Pay. The benefit of this notion for the issuer is that counterfeit cheques cannot be cashed out of the issuer's account. The benefit to the beneficiary is that the checks he receives are usually honored.
Only those cheques that comply with the aforesaid instructions will be accepted under the CTS grids' dispute resolution system, according to a September circular from the RBI. Similar arrangements may be made for cheques cleared or collected outside of CTS by member banks.