Changes in clearing rules for checks worth more than 50,000, RBI decided

According to the apex bank, the customer has to share the details of the check, the front of the check and the photo of the reverse side with the bank before giving the check worth more than Rs 50,000 under the ‘positive pay’ mechanism to the beneficiary.

The Reserve Bank of India has amended the check clearing rules to check fraud through checks. RBI is implementing a ‘positive pay’ mechanism for this. Under this, customers have to share information with the bank under the ‘Positive Pay’ mechanism on transactions of more than Rs 50000 to make the payment more secure from the check.

According to the apex bank, the customer has to share the details of the check, the front of the check and the photo of the reverse side with the bank before handing over the check worth more than Rs 50,000 under the ‘positive pay’ mechanism to the beneficiary.

After this, when the beneficiary (in whose name the check is issued) arrives at the bank to clear the check, the bank officials will match the ‘positive pay’ feature with the original check and the photo of the check sent by the customer. The check will be cleared only when the information is accurate. RBI says this new process will help check check fraud.

RBI Governor Shaktikanta Das announced in this regard that it has been decided to start a new clearing process for high-value checks to enhance the security of check payments. The apex bank will soon come up with a ‘positive pay’ mechanism for all checks worth Rs 50,000 and above.

Das said ‘this system will cover 20% of the total checks issued across the country and 80% of the transaction will be covered by the check depending on the value.’

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