What is Positive Pay System? This bank's new rule for cheque payment​ comes into effect from today - All you need to know

Bank of Baroda cheque rule: Bank of Baroda has introduced a new cheque rule for its customers. Starting August 1, the bank has made it mandatory for its customers to electronically confirm important information about cheques of high value.BoB customers will have to confirm for authentication with the bank before the cheque exceeding Rs 5 lakh is cleared under the bank’s Positive Pay System.That means, cheques issued exceeding Rs 5 lakh shall be returned in the clearing/Intersol without payment, if Positive Pay confirmation is not provided.

For Positive Pay confirmation, customers will have to enter six mandatory information including — cheque date, name of the payee, amount of money, account number, cheque number and transaction code.

The new rule has been introduced in order to ensure the safety of customers' accounts dealing with high-value transactions. The bank believes that its Positive Pay System will help to check any cheque frauds.

"Committed to ensure the security of your banking. With Positive Pay System, we are here to protect you from cheque frauds. Cheques of Rs. 5 lakh & above are confirmed before payment. So simply #BankSafe with #BankofBaroda," the bank tweeted.

Committed to ensure the security of your banking. With Positive Pay System, we are here to protect you from cheque frauds. Cheques of Rs. 5 lakh & above are confirmed before payment. So simply #BankSafe with #BankofBaroda#AzadiKaAmritMahotsav @AmritMahotsav pic.twitter.com/xPzDwjy8Jp

— Bank of Baroda (@bankofbaroda) July 5, 2022

As per the bank, there is no option for modification or deletion of a registered confirmation in any mode because modification/deletion cannot take place once the data is submitted to the server provided by the National Payment Corporation of India. However, customers can stop the payment of issued cheques at any point of time before its presentment / payment in CTS clearing or at counter.