New cheque book rules: State Bank of India (SBI) is the biggest public sector bank and also has a massive customer base. Millions of people trust the largest public lender with their money. So, in order to secure their money, SBI keeps upgrading its system to make transaction safer and transparent. Keeping safety of its customers, Public lender is all set to roll out Positive Pay System (PPS) for cheque books from January 1.  

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The action by SBI comes after the Reserve Bank of India (RBI) ordered banks to start a 'positive pay system' for cheques from January 1, 2021. The idea behind this move was to check banking frauds. Once Positive Pay System is introduced, the customer will have to re-confirm key details for payments beyond Rs 50,000. The RBI has left it on the people to decide if they would want to avail this facility. However, for cheques above Rs 5 lakh, banks may consider making it mandatory.

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SBI took to Twitter and posted, “Keeping all your transactions safe including those done via Cheques. SBI is introducing Positive Pay System from 1st January 2021 to make Cheque payment secure. To know more, contact your nearest SBI branch. #SBI #StateBankOfIndia #PositivePaySystem #PPS #ChequePayment.”

Under this new cheque payment system, the issuer of the cheque will be required to submit certain details to SBI and these details will be cross-checked before the cheque is presented for payment. The Cheque Truncation System (CTS) flags any discrepancy found to both the drawee and the presenting banks. The banks can therefore address the issue.

Informing about the same SBI tweeted, “ As per RBI guidelines, we are introducing Positive Pay System w.e.f. 1/01/2021 to ensure added security where the cheque issuer now needs to provide account number, cheque number, cheque amount, cheque date, payee/beneficiary name and instrument type (multi-city and non-multi-city).