Bank of Baroda's New Cheque Payment Rule From June: Check Details

To prevent fraud during cheque payments, Bank of Baroda will make "Positive pay confirmation" mandatory for its customers starting June 1, 2021. Customers will only need to reconfirm their check information if the amount to be processed exceeds Rs 2 lakh, according to the bank.

BOB customers are requested to provide us with advance notice of cheques issued to beneficiaries so that the Bank can move the High-Value cheques without requiring a re-confirmation phone call from your base branch at the time of presentation for payment in CTS clearing, stated Bank of Baroda on its website.

What is Positive Pay?

Positive Pay is a term that entails reconfirming key information on large-value checks. The issuer of the cheque submits certain minimum details of the cheque (like date, name of the beneficiary/payee, number, etc.) to the drawee bank through electronic channels such as SMS, mobile app, internet banking, ATM, and so on, which are then cross-checked with the presented cheque by CTS. Any difference is reported by CTS to the drawee and presenting banks, which take corrective action.

Positive pay confirmation is proposed to be made mandatory for High Value cheques of Rs.02.00 Lacs and above, starting on June 1, 2021.

Bank of Baroda's latest cheque payment rule from June:

1) There is no choice for changing or deleting a recorded confirmation in any mode because changes or deletions are not possible once the data is sent to the National Payment Corporation of India's server. Customers may, however, halt the payment of issued cheques at any time prior to their presentation/payment in CTS clearing or at the counter.

2) If the given key details match the actual cheque presented in the CTS clearing and all else is in order, such as appropriate funds, signature match, and so on, the cheque will be transferred.

3) Confirmations submitted/verified via any channel/mode up to 06.00 PM (daily) will only be processed for the next clearing session. Following that, all confirmations will be processed in preparation for the next clearing session. Confirmation through Branches is available during the respective Branch's daily business hours. All other modes/channels will be available 24 hours a day, 7 days a week to have Positive Pay confirmations.

4) For each successful submission of Positive Pay confirmation, a reference (registration number) will be sent via SMS to the registered mobile number. Just one mode must be used to provide confirmations.

5) Customers must ensure that they have sufficient funds to present/pay the given cheque/s, whether verified or not.

6) Cheques that are more than three months old from the date of confirmation will not be approved.
The cheque can be dated at some time in the future.
7) In Mobile Banking/Net Banking, customers must enter their login credentials (MPIN, Password, etc.).

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