New Delhi: From February 1, the Bank of Baroda (BoB) has brought in changes in its cheque payment systems. "As per RBI directions, Positive Pay (CPPS) mechanism would be mandatory with effect from 01.02.2022 for Rs. 10 lakh and above issued cheques," the country's second largest lender Bank of Baroda said in an SMS to its account holders.
Positive Pay was created to prevent any fraudulent or unsolicited transactions in a customer's financial transactions. The bank verifies the details of a large-value check in this section. This is accomplished by checking key information such as the check number, amount, and account number.
Customers of BOB will now be required to send some of their most important cheques to the bank via electronic means for authentication before they can be cleared. The information transmitted across is then double-checked using the Check Truncation System (CTS).
All account holders generating cheques for amounts of Rs 50,000 and above will be able to use it if their bank allows it. While the account user has the option of using this service, banks may consider making it mandatory for cheques for Rs 5,00,000 or more.
Only those cheques that comply with the aforesaid instructions would be accepted under the CTS grids' dispute resolution mechanism, according to an RBI circular issued in September. Similar arrangements may be made for cheques cleared or collected outside of CTS by member banks.
