Positive Pay Request: New security feature for cheque payments

Any discrepancy between the cheque details and presented cheque gets flagged to the drawee bank and presenting bank

Staff Writer   /   October 25, 2021

If you worry about misuse of cheque payments, you can now put a Positive Pay Request through NetBanking to ensure added security to cheque payments over Rs 50,000. Banks like HDFC Bank and Kotak Bank have introduced Positive Pay Request. Here is all you wanted to know about this new security feature. 

Why do you need Positive Pay

Positive Pay helps you put an additional layer of security to any physical cheque payment transaction.

Here is how the system works.

• You provide the basic cheque details in NetBanking.

• The Cheque Truncation System (CTS) verifies the cheque details with the presented cheque.

• Any discrepancy between the cheque details and presented cheque gets flagged to the drawee bank and presenting bank.

• This adds a security check for cheque payment transactions above Rs.50,000.

What does ‘Cheque Details’ mean

The details which the issuer needs to provide with respect to the cheque issued are as follows –

1. Account Number
2. Cheque Number
3. Cheque Amount
4. Cheque Date
5. Beneficiary Name

Important points

Positive Pay request through NetBanking can be raised for cheque amount above Rs 50K.

Do note that Positive Pay is an additional risk mitigation measure and is not a mandatory requirement for instrument processing.

The cheque issuer needs to submit their Positive Pay Request to the bank at the time of issuance, or at least 24 working hours before the cheque is presented in clearing.

The bank will send the details to NPCI. The customer will be informed on acceptance or rejection of the positive pay request through their registered email ID.

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