Business News: The New System to pay the payments by cheque will start from 1st January 2021. This system will be applicable in our country because people are falling prey to many types of bank fraud, for which the RBI implemented this new system which is going to start from January 1st.
On the other hand, there is an automated tool called Positive Pay, to check fraud through payments by Cheque. Under which any person who is issuing a cheque will get electronic information twice about the beneficiary name on the cheque, amount of payment and the recipient itself.
This information will be given to the person issuing the cheque through mobile app, internet banking or SMS.
- It is a system of positive pay which envisages checking the details of paid cheques.
- A new rule will be introduced only for the account holders for all payments of Rs.50,000 and above.
- According to this new system, the user issuing the check will get all the information from the mobile app, Internet banking, SMS and ATM. The cheque will be double checked before being approved.
- NPCI (National Payments Corporation of India) will develop a positive pay system and make it available to its participating banks.
- The cheques which will come under the new system will be accepted by the CTS grid dispute resolution mechanism.