PNB makes PPS mandatory for cheque payments worth Rs 5 lakh and above

In a move to safeguard customers from fraudulent payment of cheques, Punjab National Bank, one of India’s leading public sector bank, has made Positive Pay System (PPS) compulsory for cheque payments worth Rs 5 lakh and above. The move will be effective from April 5, this year.

Customers can use the PPS facility by providing the cheque details through the branch office, online banking for individuals and businesses, Mobile Banking (PNB ONE), or SMS Banking.

The details to be submitted one working day prior to cheque presentation/clearing date.

As per Reserve Bank of India (RBI) guidelines, PNB had earlier introduced PPS for cheques of Rs 50,000 and above presented in CTS clearing from January 01, 2021. 

RBI had recommended that availing this facility is at the account holder’s discretion and banks may consider making it mandatory for cheques of Rs 5 lakh and above.

The cheques that are registered in the PPS will only be accepted under the dispute resolution mechanism. Earlier, the mandatory submission of cheque details in PPS was set at Rs 10 lakh and above.

What is PPS?

Positive Pay System is a process of validating/confirming the key details of cheques to deter Cheque frauds (applicable on high value cheques amounting Rs 50000 and above). This is a measure for prevention of frauds perpetrated through cheque tampering/alteration. 

Positive Pay System involves re-confirming of key details of the cheque by drawer to the Bank, which would be cross-checked with the presented cheque at the time of payment processing.

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