Banks Changing Cheque Rules From January 2021: More Details Inside

17 Dec, 2020 17:49 IST|Sakshi Post

The Reserve Bank of India (RBI) introduced the “positive pay system” a few months ago. Under this system re-confirmation of certain important details will be required for cheques that involve payments of more Rs 50,000.

This decision was made in the light of recent growth in banking frauds. This system will come into effect from January 1 2021.


Here are certain important details that you need to know about this new “positive pay system.”

1. The system comes into effect from January but applying the system will be the decision of individual account holders. Although, some banks might make it a compulsion for cheques of Rs 5 lakh and above.

2. National Payments Corporation of India (NPCI) will extend this system of Positive Pay in CTS (Cheque Truncation System) and make it available to participant banks. Banks can apply it for the account holders where payment cheques of Rs 50,000 and above are issued.

3. The major process is reconfirming key details for cheques with large amounts. The procedure will have the issuer of the cheque submitting important details of the cheque to the drawee bank. Information like date, name of the beneficiary / payee, amount, etc will be necessary. This can be done through electronic mediums like mobile app, SMS, internet banking, ATM, etc.

4. This will be checked by CTS. If there are any inconsistencies, it will be marked by CTS. The drawee bank and presenting bank will then take necessary measures.

5. Checks with any compliant with the instructions will be received under the dispute resolution mechanism at CTS. Member banks can make necessary arrangements for cheques cleared/collected outside CTS as well.


RBI has directed the banks to spread awareness about this system. Send SMS, alerts, display explanatory ads inside the banks and do online awareness as well. Make sure the customers know about the features of the Positive Pay System. 

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