Positive Pay: Checks will now make transactions more secure, know how this system works. Almost every other day you read news related to check fraud in newspapers. In today’s time, altering the details of account holders to prepare fake checks or withdraw funds is quite common.
With this help, the fraudsters take away the hard-earned years of common people in minutes. In such a situation, to make payment through checks more secure, RBI has decided to introduce a mechanism called ‘Positive Pay’ for all checks above Rs 50,000. On the basis of volume and value, 20 percent and 80 percent of the checks, respectively, would fall under the purview of RBI’s move.
RBI Governor Shaktikanta Das said after informing the decisions taken in the bi-monthly review meeting of the RBI’s Monetary Policy Committee (MPC), “Positive for all checks of Rs 50,000 or more” to make check payments more secure. Pay ‘system will be implemented.’ ‘
Know what is ‘Positive Pay’
It is a type of fraud detection tool. Under this, all the information related to the check is cross-verified before it is encashed. The person issuing the check shares all the information related to the issued check on the bank’s mobile app. If there is no match in the data, the bank contacts the person issuing the check.
How does this mechanism work
The private sector ICICI Bank uses this mechanism. According to the information given on the ICICI Bank website, before giving the check to the beneficiary, you need to check the information on the bank’s mobile application, such as check number, date of the check, name of the payee, account number, amount and photo of the front and backside of the check.
Need to share.
After this, when the payee deposits the check, the information given by the check and the issuer is crosschecked through Positive Pay. If the information was given by the check issuer and the details related to the check match, then the amount is given to the beneficiary. At the same time, if the details are not matched, then the check issuer is contacted.