23 September, 2024
Issuing high-value cheques just got a lot safer. Effective from January 1st 2021, the RBI has introduced an electronic authentication system called Positive Pay that will allow you share the cheque details with your bank before the bank processes it. This additional security layer is meant to address the rising instances of cheque fraud that have made headlines throughout the past year. As reported by the RBI, the total volume of fraud transactions in India was pegged at Rs. 64,681 crores between April and September 2020 with forged or counterfeit cheques accounting for a significant share.
Since cheque payments are among the popular payment options, PPS can be beneficial in securing your money. With PPS, you will notify the bank about the cheque payment and provide relevant details. In turn, the bank will submit the details to the National Payments Corporation of India (NPCI). PPS is an important part of the Cheque Truncation System (CTS). Truncation is the process of stopping the flow of the physical cheque which is en route to the paying bank branch. The physical cheque is replaced with an electronic image of the cheque and this image is transmitted to the paying branch. This may effectively eliminate the associated cost of movement of the physical cheques and reduce the time required to process them.
How does Positive Pay work?
According to the RBI, while most retail consumers prefer to use electronic alternatives such as NEFT and RTGS, cheques are still a popular option now. Before you issue a cheque, you need to share cheque details like name of the payee, issue date, and amount and send it to your bank via email. When the cheque is presented to the bank for payment via CTS Clearing, the bank will compare the instrument details received against the details you send. In case of any mismatch, the bank may review it for suitable action.
Key facts to know about HDFC Bank Positive Pay
HDFC Bank is fully aware of the risk posed by cheque fraud. Hence, we have put into place a robust process that is fully compliant with RBI guidelines. However, not all cheques will need to undergo verification via Positive Pay. We recommend this process for cheques with a value of Rs 50,000 and above.
Here are a few points to remember:
Cheque details need to be submitted via email at least 24 hours before the cheque is presented for clearing.
An excel sheet with the following details needs to be attached in the email:
Serial Number
Your account number
Cheque number
Cheque issue date
Cheque amount
Name of the payee/Beneficiary name
3.The information needs to be submitted in English language and the beneficiary name should be in the exact same manner as written on the cheque.
4. Once the bank receives your request, an automatic acknowledgement email will be sent to you.
5. On receipt of the email from the registered email ID of the cheque issuer, the Bank will cross verify the details.
6. The Bank will accept or reject your Positive Pay request and a confirmation of acceptance or rejection will be sent to the cheque issuer via email
7. In case of a mismatch, the request will be rejected, and a fresh Positive Pay request can be submitted after rechecking the cheque details. Please note that a Positive Pay request needs to originate only from the registered email ID of the cheque issuer for security reasons.
To know more, click here.
Check cheque status and stop payment instantly with HDFC NetBanking or MobileBanking:
With HDFC Bank NetBanking or MobileBanking, you can easily stop payment on a cheque with just a few simple steps. Alternatively, you can also call phone banking or approach your closest HDFC Bank branch for assistance. All you need to do is enter your log-in credentials and the cheque number, and we will take care of the rest. For instant updates on the status of a cheque you have issued, simply SMS HDFCCST along with the 6-digit cheque number. You can also use the View Cheque Status option via HDFC NetBanking.
* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action.