PNB to make high value check verification system mandatory to protect bank customers from frauds
Lending major Punjab National Bank (PNB) on Tuesday said it will make high-value check verification system mandatory to protect bank customers from frauds. The bank will make ‘Positive Pay System’ (PPS) mandatory from April 4.
As per the Reserve Bank of India (RBI) guidelines, PNB had introduced PPS for checks of Rs 50,000 and above presented in ‘CTS’ clearing with effect from January 1, 2021, now for checks of Rs 10 lakh from next month. will become mandatory. above.
The system, developed by the National Payments Corporation of India (NPCI), mandates a customer to issue a high-value check to re-verify certain essential details, which need to be cross-checked while presenting the check in clearing before payment. is checked.
“PNB customers are required to share details such as account number, check number, check alpha code, date of issue, amount, beneficiary name,” the lender said in a statement.
“These details are to be shared with the bank at least 24 hours before the check is presented for clearing. Customers can share the details in the prescribed format through their Internet Banking, Mobile Banking, SMS Banking or at their home branch. “
Last year, RBI issued guidelines to banks to implement the PPS system to protect customers from fraudulent collection of high value cheques. It directed the banks to facilitate issuance of checks to all account holders for an amount of Rs 50,000 and above.
It had said that while availing the facility is at the discretion of the account holder, banks may consider making it mandatory for check values of Rs 5 lakh and above.
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