RBI changes the rules of transactions with checks, know new rules
This news is extremely significant for you to know that if you transact more than check, as the Reserve Bank of India (RBI) has amended the rules for high value check clearing. RBI,very recently, has introduced a new system to increase customer security in check payments and have further reduction to the incidence of fraud due to tampering of check payments. RBI has concluded to introduce "Positive Pay" system for all checks of 50 thousand or more.
At the time of issuing the check, under the system, the bank will be contacted for payment of the check based on the information given by its customer. Furthermore, the system will cover about 20% of the value, respectively based on the value of the total checks apparently issued in the country and the check will cover 80% of the transaction amount by value. Also, the RBI mentioned that operational guidelines will be issued for this system.
Also, details of the check, under the Positive Pay system, issued by the account holder before handing over the check to the beneficiary, like the check number, check date, payee name, account number, amount, et cetera. Besides, the photo sharing on the front and back side of the check has to be done. Afterwards, when the beneficiary deposits the check to be encashed, the check details provided through the bank positive pay system will be compared. If only the details match, then the check will be approved likewise.