SBI Positive Pay System: Preventing check fraud in banks is crucial to safeguard financial assets and maintain customer trust. By implementing robust security measures, staying ahead of evolving fraud tactics, and educating customers about potential risks, banks protect themselves and their customers from financial losses, legal issues, and reputational damage, while ensuring a seamless and secure banking experience for all.
SBI Positive Pay System
The SBI Positive Pay System is one such security measure implemented by the State Bank of India to prevent cheque fraud. This is a measure for prevention of frauds perpetrated through cheque tampering/alteration. Positive Pay System involves re-confirming of key details of the cheque by drawer to the Bank, which would be cross-checked with the presented cheque at the time of payment processing.
As per Reserve Bank of India directives, the Bank has implemented Positive Pay System (PPS) for all modes of cheque payments (Cash/Transfer/Clearing) effective from January 1, 2021.
Also Read: SBI Issues Top Safety Hacks: Secure Your Online Banking With These Steps
The Positive Pay System is considered as a valuable security measure that can help to protect customers from cheque fraud. It is a simple and easy-to-use system that can help to give customers peace of mind knowing that their cheques are safe.
The Positive Pay System implemented in SBI involves a two-step process as under:
1. Account Registration
2. Lodgment of Cheque
Account Registration
Customers who need to join the facility have to do a one-time registration of their cheque operated account for Positive Pay System through any of the branches by submitting an application in the prescribed format.
Registration can also be done through alternate channels viz. Retail Internet Banking (RINB), Corporate Internet Banking (CINB), Mobile Banking (YonoLite) and YONO (Mobile App).
Customers need to select an account level limit for registration. This can be any amount depending on customers’ risk perception.
According to the information available on the official website of the bank, the lender is planning to make the Positive Pay System mandatory for Savings Bank account cheques of Rs.5 lakhs and above and all other account type (Current Account/Cash Credit/Overdraft) cheques of Rs 10 lakhs & above.
As such, once the mandatory clauses are made effective, maximum account level limits which can be selected would be the amounts mentioned above. All the registrations already made above the mandatory limits would be brought down to the mandatory level on the effective date.
Lodgment of Cheque
Once registered for PPS, customers need to provide following details of cheques issued for and above account level limit selected to Positive Pay System:
1. Account Number
2. Cheque Number
3. Cheque Date
4. Cheque Amount
5. Beneficiary (Payee) Name
6. Instrument Type (Two-digit number on right bottom on MICR band)
Lodgment of cheques can be done through any of the Branches or through alternate channels viz. RINB, CINB, Mobile Banking (YonoLite), YONO (Mobile App) & SBI Quick (SMS).
Effective from the date of implementation of mandatory clause in PPS, cheques for amounts equal to and above account level limit/ Savings Bank cheques of Rs 5 lakhs and above/All other account type (CA/CC/OD) cheques of Rs 10 lakhs and above for which correct lodgment details are not provided in Positive Pay System would be returned unpaid.
However, cheque return charges would not be levied on such returns.
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