“Positive Pay System”- A New Brain Child ...

“Positive Pay System”- A New Brain Child of the Reserve Bank of India

Author Name : Prasanna. M. R.

ABSTRACT

The Reserve Bank of India (RBI) has come up with Positive Pay System to prevent cases of banking fraud. The new system will be implemented from January 1, 2021. Here is what people should know about it. Customers will now have to furnish details of cheques like name of the beneficiary, payee, amount to the drawee bank and date through available means, SMS, Internet Banking or ATM and Mobile App. This will be applicable, if the amount mentioned on the cheque is above Rs.50,000. The Central Bank has asked all the banks to spread awareness on the Positive Pay System among their customers through SMS or putting out information regarding that in branches. They can also make their customers familiar with the Positive Pay System through their website. “India is probably the only country with cash payment system of funding requirements of commercial borrowers and payments. The paper shows areas in the efficiency in existing payment systems and Positive Payments System in India. The paper makes a modest attempt to identify opportunities and challenges for India. Numerous major changes in the payment system would take place at a quicker pace as Positive Pay System for cheque trunctions.

Keywords: RBI, Cheques, Payments, Branches, Customers.