Axis Bank is starting the positive pay system from September 1, 2021 i.e. tomorrow. Under this, the facility of check based transactions will be secure.
Despite the strict rules of the Reserve Bank of India (RBI), fraud happens in banks. Fraudsters find some way or the other to rob the common people. Keeping in mind the increasing fraud, Axis Bank is going to make major changes in the rules related to check payment for customers. Axis Bank is launching the Positive Pay system from tomorrow.
What is Positive Pay System?
The person issuing the check under the Positive Pay system will also have to send the details of his check to his bank. Through this system, checks that have paid more than the specified amount will have to be reconfirmed. The person issuing the cheque will have to re-inform the date of the cheque, name of the beneficiary, payee and payment amount electronically.
The rule will be applicable on checks of more than Rs.
By the way, the positive pay system is applicable for payment through bank cheque of Rs 50,000 or more. However, Axis Bank customers will have to confirm the check details under the Positive Pay System only when it issues bank checks of Rs 5 lakh or more.
How will the system work?
Through this system, check information can be given through SMS, mobile app, internet banking and ATM. These details will be re-verified before making payment of the cheque. Positive Pay System is to provide protection against fraud in clearing of checks under check truncation system. Check truncation is a process of clearing system cheques. It makes the process of collection of checks faster.
RBI took the decision
It is to be known that the Reserve Bank of India had decided to implement the Positive Pay System with effect from January 1, 2021, to make the facility of check based transactions secure. On the other hand, the private sector ICICI Bank has been providing this facility to its customers since 2016. The country’s largest state-run bank, State Bank of India (SBI), had started the new positive pay system from January 1, 2021, based on the guidelines of RBI. This system is applicable in Bank of Baroda also.
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