The Indian bank said that, in accordance with RBI guidelines, it has introduced a positive payment system for checks ₹ 2 lakh and above from January 1 and that it will now be mandatory from August 15.
The Chennai-based Indian bank has made the payment system positive, a process of reconfirming key details of high-value checks, mandatory from August 15.
In order to guard against check fraud, the Reserve Bank of India had issued guidelines to banks to implement this system from January 1, 2021. It asked banks to activate the facility for all account holders issuing checks for amounts of 50,000 and over. He also said that while the use of the facility is at the discretion of the account holder, banks may consider making it mandatory for check values ​​of 5 lakh and above.
The Indian bank said that, in accordance with RBI guidelines, it has introduced a positive payment system for checks ₹ 2 lakh and above from January 1 and that it will now be mandatory from August 15.
Under the system developed by National Payments Corporation of India, a customer issuing the high value check has to share some essential details of the issued check to the bank. Details are cross-checked when clearing the check and any discrepancies are reported.
Indian Bank said customers need to share details such as account number, check number, date of issue, amount, transaction code, MICR code. Those details must be shared at least 24 business hours before the check is presented for clearing, he added.
Indian Bank said customers can share details through its website, online banking and mobile banking or through their home branch in the prescribed format.
RBI said that only checks registered in the positive payment system will be accepted under the dispute resolution mechanism.
