To sensitise its customers against high-value cheque frauds, Punjab National Bank on Friday urged them to submit the details about such cheques at least a day before clearance under Positive Pay System (PPS) framework.
The National Payments Corporation of India (NPCI) has developed the PPS under which a customer issuing a high-value cheque is required to reconfirm some essential details such as cheque number, cheque amount, date and beneficiary name. These details are then cross-checked while presenting the cheque for payment.
Punjab National Bank (PNB) implemented the Positive Pay Confirmation from April 4, 2022, under the PPS framework mandatory for cheques of Rs 10 lakh and above.
"As per bank's guidelines, customers are required to submit the details of their cheques at least one working day prior to clearance to enable a smooth verification process and avoid cheque returns," PNB said in a release.
PNB said it has made the PPS facility live through all branches, internet banking services -- retail and corporate -- PNB ONE as well as SMS banking and asked its customers to avail the facility of PPS by submitting the requisite details of the cheque issued by them through these means.
Reserve Bank of India had issued the guidelines to provide the facility of PPS for cheques of Rs 50,000 and above and advised that the banks may consider making it mandatory for the cheque of Rs 5 lakh and above.
PNB said it accordingly made available this facility for cheques of Rs 50,000 and above from January 2021 and then made it mandatory for cheques of Rs 10 lakh and above in April 2022.