oppn parties Positive Pay System Should Be Enforced In A Unfiorm Manner

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  • Home minister Amit Shah says BJP under Narendra Modi taught communal rioters a lesson in 2002 and that has kept Gujarat peaceful since then
  • Supreme Courts stays Calcutta HC order for a CBI probe itno the move to create supernumerary posts for illegally appointed teachers
  • Calcutta HC "stunned, scandalized and flabbergasted" that the state government created supernumerary posts to appoint illegally appointed teachers in the SSC scam
  • Law minister Kiren Rijiju says collegium system to select judges is alien to the Constitution while CJI Chnadrachud defends it
  • Delhi HC bars people from using actor Amitabh Bachchan's image, voice, duplicate image or anything associated with him to promote anything without his authorization
  • Final electoral roll pubslished in J&K, shows a gain of 772000 voters or a 10.19% rise
  • CJI Chandrachud says that the Supreme Court and the government must not find faults but must strike a balance to work toegether
  • After being hit by ransomware, the servers of AIIMS remained out of order for the 3rd day
  • CBI files charge sheet against 7 in Delhi liqour excise scam case, Manish Sisodia's name not in it
  • Supreme Court to examine the issue of gay marriages, issues notice to Centre
  • Adani Enterprise will raise Rs 20000cr in a follow-on public offer (FOP), the largest of its kind in India
  • Forex reserves rose by $2.5bn in the week ended November 18 to stand at $547bn
  • Kshema General Insurance becomes the first company to get licence after 5 years, 19 more await Irdai approval
  • Stocks end flat but positive on Friday after a volatile trading session: Sensex gains 20 points to 62293 and Nifty 28 points to 18512
  • First ODI: New Zealand beat India in a high scoring match as even after scoring 306, Indian bowlers fail to press home the advantage
Supreme Court questions the tearing hurry to appoint Arun Goel as election commissioner, says it is 'mytified' by the criteria for shortlisting 4 officers for the purpose
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Positive Pay System Should Be Enforced In A Unfiorm Manner

By Linus Garg
First publised on 2022-09-26 09:00:52

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

Although the positive pay confirmation system(PPS) , to prevent banking frauds related to high value cheques, was introduced by the RBI in January, 2021, a lot of confusion still prevails in the minds of the customers since the RBI had not made it mandatory. It is only now that it has advised banks to make the PPS mandatory for cheques above Rs. 500000.

Since PPS is not mandatory for cheques up to Rs. 500000, it has been left to the discretion of the banks to introduce the system as per their own threshold. There are many complaints from customers that different banks are following different thresholds for PPS. For instance, Bank of Baroda (BoB) (and some other banks) requires that customers intimate it (there are many channels for doing so) whenever they issue a cheque of more than Rs 50000 to anyone. On the other hand, SBI requires this only for cheques above Rs 500000.

While PPS is a good step by the RBI, the lack of clarity in enforcing it with uniformity in the banking system is troubling customers. For instance, an SBI customer, knowing that the requirement for PPS is for cheques above Rs 500000, deposits a cheque of Rs. 100000 of BoB received from a customer. The cheque is returned unpaid by BoB with the remark "advice not received". The SBI customer did not feel the need to ask his payer whether he had informed his bank through PPS as he thought the limit was Rs. 500000. The BoB customer was perhaps not aware that the requirement in his bank was for cheques above Rs. 50000.

This can be solved by the RBI issuing an order making PPS mandatory with a uniform threshold for all banks and prevents banks from setting their own thresholds. That would prevent such bouncing of cheques and disputes between traders.