Bank Frauds are on the rise so the Reserve Bank of India has introduced the "positive pay system" for cheque. Under this, re-confirmation of key details may be needed for payments beyond Rs 50,000.
State-owned Bank of Baroda's announcement is going to impact clearance of cheques and will reduce the threshold of the positive pay system. Before handing over cheques to the beneficiaries, Customers will have to provide the cheque's key details.
This will enable the bank in CTS clearing at the time of presentment for payment, Branch and InterSol (as well as on counter). Without any re-conformation phone call by their base branch, High Value cheques can be passed.
All cheque transactions, including Branch and InterSol of Rs 5 lakhs and above without positive pay confirmation, are being returned w.e.f. 07.07.2023 to prevent fraud.
Rs 50,000 cheques and above can be confirmed through Positive Pay, it is also important to note that it is mandatory for clearing cheques of Rs 5 lakhs and above. All such clearing cheques are being returned w.e.f. 23.01.2023 if Positive Pay Confirmation is not provided.
Under this process, the issuer of the cheque submits electronically, through channels like SMS, mobile app, internet banking, ATM, etc., certain minimum details of that cheque (like date, name of the beneficiary/payee, amount, etc.) to the drawee bank, details of which are cross checked with the presented cheque by CTS.
Bank of Baroda decided to reduce the mandatory threshold limit of positive pay confirmation for all CTS clearing cheques to Rs 2 lakhs to curb high value cheque related frauds.
1. Rs 4 lakhs and above: From 1 May 2025
2. Rs 3 lakhs and above: From 1 August 2025
3. Rs 2 lakhs and above: From 1 November 2025
Available modes for confirmation are bobworld ( Mobile Banking), bobworld Internet ( Net Banking), through Base Branch, SMS on 8422009988, WhatsApp Banking (8433 888 777) and bank's website, BoB said.
Any discrepancy is flagged by CTS to the drawee bank and presenting bank, who would take redressal measures.
