Cheque fraud is a significant risk in financial transactions. Common types of cheque fraud include forgery, where a fraudster forges someone else’s signature; cheque alteration, where legitimate cheque details are changed to benefit the fraudster; and counterfeit cheques, which are entirely fabricated to mimic genuine ones. These types of fraud can have severe financial consequences, especially if not detected early.<\/p>\n\n\n\n
The Reserve Bank of India (RBI) introduced the Positive Pay System (PPS) on January 1, 2021, as a measure to combat fraud perpetrated through cheque tampering\/alteration and protect account holders.<\/p>\n\n\n\n
Keep reading to know more about PPS, how it’s implemented, its advantages, and ways to easily submit your cheque details online.<\/p>\n\n\n\n
To explain \u2018what is PPS\u2019 in simple words, consider it a fraud detection tool introduced by the RBI to increase the safety of cheque-based transactions.<\/p>\n\n\n\n
It involves double-checking the details and authenticity of a cheque before it is processed for payment. This pre-verification step ensures that only genuine cheques issued by the account holder are processed.<\/p>\n\n\n\n
PPS operates on a simple mechanism:<\/p>\n\n\n\n
Issuance of cheque<\/strong>: You submit the cheque details electronically to the bank. The details usually include the cheque number, date, payee name, account number, amount, and an image of the cheque. These details can be shared through various channels, such as internet banking, mobile banking, email, or by visiting a bank branch in person.<\/p>\n\n\n\n Verification process<\/strong>: When the cheque is presented for clearing, the bank\u2019s system verifies these details against the one provided during issuance.<\/p>\n\n\n\n Clearing the cheque<\/strong>: If all the details match, the cheque is cleared, and the payment is made to the beneficiary. If there are any discrepancies, the cheque will be flagged, and no funds will be debited from your bank account<\/a> <\/strong>until further review.<\/p>\n\n\n\n PPS in India functions on a mixed basis\u2014both mandatory and voluntary, depending on the cheque amount involved. For cheques valued at \u20b950,000 and above, account holders have the option to choose whether or not to use this service. However, for cheques exceeding \u20b95 lakh, banks may decide to make PPS mandatory.<\/p>\n\n\n\n PPS adds an extra layer of scrutiny to high-value transactions and protects both the bank and the customer from significant financial losses.<\/p>\n\n\n\n Submitting high-value cheque details is simple and quick with IndusInd Bank. Let’s say you have an IndusInd Bank Indus Delite Savings Account and want to submit cheque details.<\/p>\n\n\n\n Here are different methods to do that:<\/p>\n\n\n\nIs Positive Pay System Mandatory or Voluntary? <\/h2>\n\n\n\n
How to Submit\/Confirm High-Value Cheque Details Online <\/h2>\n\n\n\n
Online <\/h3>\n\n\n\n
Offline <\/h3>\n\n\n\n