What is Positive Pay System for cheques? What is PPS for Cheques

Reserve Bank of India (RBI) has announced introduction of Positive Pay System (PPS) for Cheque Truncation System (CTS) vide their Circular No. RBI/2020-21/41 http://DPSS.CO.RPPD.No.309/04.07.005/2020-21 dated 25th September, 2020 w.e.f. 1st January 2021.

The concept of Positive Pay involves a process wherein the customer who is issuing cheque informs the drawee bank the details of cheque issued like Cheque number, date of issue, amount, name of payee/beneficiary etc., which are stored in the system.

When the said cheque is presented for payment, the details in respect of the cheque stored in the system are cross-checked with the corresponding details on the presented physical cheque/image of cheque. The customer can inform the details of the cheque to the bank through branches or through alternate channels like Internet Banking, Mobile Banking, SMS, YONO and other enabled channels.

The functionality for PPS has been extended to all SBI customers having cheque operated accounts.

For Registration of the Facility

Customers can register for the Positive Pay facility by submitting an application/consent at any of our branches. Registration for Positive Pay System is not mandatory, and customers can register for the facility at their discretion. Customers need to select an account level limit for the facility.

Even though the PPS is not made mandatory, customers are advised to opt for this as it is a fraud prevention measure and is in their own interest to register & provide cheque details under the system.

For Providing cheque details after registration

After registration, customers can provide details of cheques issued/to be issued, through branches/alternate channels. In case the Positive Pay facility is opted by the customer, the details of all the cheques issued/to be issued by the customer equal to and above the account level limit selected must be provided by the customer.

Commonly asked FAQs in relation to PPS

Query – Is opting for PPS mandatory for all cheques?

Ans – No, as of now this facility is optional.

Query – Is there any time limit for providing cheque details to the bank after issuance of cheque?

Ans – Yes, Cheque details should be provided to the Bank immediately on issuance of cheque. However, cheque date provided cannot be older than 90 days, but it can be future dated.

Query – Is any option is available to cancel the PPS request for cheque clearance?

Ans – Yes, Customer can cancel the request through INB, YONO Lite, YONO SBI and SBI branches.

Query – What if I do not input details of the cheques despite opting for the facility or if a customer does not opt for the facility? Will the cheques issued by him would be returned?

Ans – As of now, the facility is optional, and no cheque will be returned if the details are not available. However, Bank may make PPS mandatory for a specific limit and above at a future date. At that time provision of details would become mandatory and cheque may get returned for want of/mismatch with PPS data.

Query – Is the registration/account level limit is permanent? Can it be changed?

Ans – These are not permanent. The registration can be cancelled/ account level limit can be changed in future as per customer requirements.

Query – Where can customer get the Instrument type?

Ans – Instrument type is the two-digit code (10/11/13/29/30/31) appearing on the bottom right on the face of the cheque as last item in the MICR band.