What is Positive Pay System: Positive pay system will be implemented in the country’s leading government bank ‘Bank of Baroda’ from 1st August. The purpose of implementing this system is to protect bank customers from any kind of check fraud.
Bank Of Baroda Positive Pay Systyem: If your bank account is in Bank of Baroda (Bank Of Baroda- BoB) then this news is of your use. Today i.e. from 1st August, there is going to be a change in the rules related to BoB check. Actually, this government bank is going to implement Positive Pay System from 1st August for customers on check payment. After this, the bank will have to verify electronically before verifying the important information in checks above Rs 5 lakh.
Must confirm digitally
In a tweet made by Bank of Baroda, it was informed that we are committed to your banking safety. With BOB Positive Pay System, we want to keep our customers safe from any type of check fraud. For checks above Rs 5 lakh from 1st August, you will have to confirm digitally so that you do not face any kind of fraud.
Check can also be returned
From now on, the bank customer will have to give the details of the check before handing it over to anyone, so that the bank can proceed the check of Rs 5 lakh for payment without any confirmation call. According to the bank circular, the check can be returned if there is no confirmation of the check of 5 lakhs or more.
What is Positive Pay System?
Checks in excess of the prescribed amount under the positive pay system will have to be informed to the bank in advance. The bank cross checks the details given about the check before making payment of the cheque. The reason behind implementing this rule of RBI is to prevent misuse of checks.
After the positive pay system is implemented, the issuer of the check will have to inform the bank through SMS, Internet Banking, ATM or Mobile Banking about the date of the check, beneficiary name, account number, total amount, transaction code and check number. The bank will cross-check these details before making payment of the cheque. In case of discrepancy, the bank will reject the check.
Positive pay system is already implemented in these banks
Before Bank of Baroda, many banks in the country have implemented the positive pay system. These include State Bank of India (SBI), ICICI Bank, Punjab National Bank, Axis Bank and HDFC Bank.
