Final yr, the RBI had issued a tenet for banks to implement Optimistic Pay System (PPS) for all modes of cheque funds (Money/Switch/Clearing) w.e.f 01.01.2021. However not all banks and prospects had adopted it well timed and on a obligatory foundation. So now, many banks have made it obligatory for patrons to do PPS registration, efficient August 1, 2022, i.e. Monday.
So what precisely is PPS, how does it work and have an effect on your cheque transactions?
“The idea of Optimistic Pay entails a strategy of reconfirming key particulars of huge worth cheques. Below this course of, the issuer of the cheque submits electronically, by channels like SMS, cellular app, web banking, ATM, and so on., sure minimal particulars of that cheque (like date, title of the beneficiary/payee, quantity, and so on.) to the drawee financial institution, particulars of that are cross-checked with the offered cheque by CTS (Cheque Truncation System),” the RBI web site mentions.
shutterstock
So, underneath PPS, the one that points a high-value cheque can be required to submit the main points together with the date of issuance, title of beneficiary and so on to the drawee financial institution. This may be submitted electronically by way of e-mail, cellular banking app, and web banking, the report talked about.
Later, when the cheque is offered to a different financial institution for fee processing, the main points can be verified. If the main points match, the quantity can be given to the depositor. In any other case, the cheque can be returned unpaid.
This course of is developed by the Nationwide Funds Company of India (NPCI).
“Whereas availing of this facility is on the discretion of the account holder, banks might take into account making it obligatory in case of cheques for quantities of Rs 5,00,000 and above”, the RBI had added.
Following this, a number of banks have set the restrict of Rs 5 lakh or above for obligatory PPS registration, efficient August 1, 2022.
The Reserve Financial institution of India (RBI) had made it obligatory for cheques price Rs 5 lakh or above to observe the Optimistic Pay System (PPS) to be encashed. If the foundations aren’t adopted, the banks are allowed to refuse clearance of such cheques. A number of banks together with the Financial institution of Baroda (BoB) and the State Financial institution of India (SBI) have issued notifications to assist the shoppers full the PPS formalities, as per Enterprise Commonplace report.
Final month, BoB issued pointers stating that W.e.f. 01.08.2022, Optimistic Pay affirmation is proposed to be made obligatory for cheques issued for Rs.5.00 lacs & above. Which means, cheques issued for these values shall be returned within the clearing/Intersol with out fee, if constructive pay affirmation will not be supplied on or after 01.08.2022.
In its round, BoB talked about that the trail for offering Optimistic Pay confirmations might be completed by the next channels/modes- Cell Banking, Web Banking, Department go to, SMS and Name Middle. Whereas SBI on its web site mentions that lodgment of cheques (PPS) might be completed by any of the branches or by alternate channels akin to web banking, cellular banking/app, and SMS.
shutterstock
Additionally Learn: Expensive Calculation: A ‘Copy Paste’ Error By One Financial institution Worker Led To ₹1.5 Crore Fuss, This is How
Why PPS?
RBI had talked about in its round earlier in 2020 “To additional increase buyer security in cheque funds and scale back situations of fraud occurring on account of tampering of cheque leaves, it has been determined to introduce a mechanism of Optimistic Pay for all cheques of worth ₹50,000 and above. Below this mechanism, cheques can be processed for fee by the drawee financial institution primarily based on info handed on by its buyer on the time of issuance of cheque.
Whereas availing of this facility is on the discretion of the account holder, banks might take into account making it obligatory in case of cheques for quantities of ₹5,00,000 and above.”
Particulars which can be required to be furnished with the financial institution, embrace account quantity, cheque quantity, cheque date, cheque quantity, transaction code, beneficiary title and MICR code.
For the newest and attention-grabbing monetary information, hold studying Indiatimes Value. Click on right here
