Categories: Banking

RBI announces ‘positive pay’ feature to help avert cheque frauds

The Reserve Bank of India (RBI) has announced to introduce a mechanism of ‘Positive Pay’ feature for all cheques of value Rs 50,000 and above. This feature helps to avert cheque frauds. The limit of Rs 50,000 will cover approximately 20 per cent of transactions by volume and 80 per cent by value.

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About Positive Pay:

  • Positive pay is a fraud-prevention system offered by most commercial banks to companies to protect them against forged, altered and counterfeit checks.
  • When the beneficiary submits the cheque for encashment, the cheque details are compared with the details provided to the Bank through Positive Pay.
  • If the details match, the cheque is honoured. In case of mismatch in cheque details, the cheque is referred to you.

Important takeaways for all competitive exams:

  • RBI 25th Governor: Shaktikanta Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.

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Sumit Arora

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