Categories: Business

Check payment fraud will be tightened, RBI will bring positive pay feature

Photo: AMFAM

RBI announces positive pay feature to help avert cheque frauds

new Delhi. Reserve Bank of India Governor Shaktikanta Das said that a positive pay feature would be provided in the banking system to prevent fraudulent transactions in checks. Under the positive pay feature, the person issuing the check has to take a photo of the check and upload it on the bank's mobile app before issuing the check.

After a bi-monthly review of monetary policy, Das said that to strengthen the security of check payments, it has been decided to introduce a positive pay feature for all checks worth Rs 50,000 or more. He said that under this limit of Rs 50,000, about 20 per cent in terms of numbers and 80 per cent transactions according to the payment value will come.

Other guidelines in this regard will be issued soon. ICICI Bank, the second largest private bank in the country, has been providing such facilities to its customers since 2016 without any limit. With this facility, before a bank deposits a check to a beneficiary, it is known that its customer has issued the check. This allows the bank employee to match the information already available with him before paying the check. With the help of this new feature, any such check, where there is a possibility of fraud, will help to prevent it and this will protect the depositor's money.

This post was published on August 7, 2020 10:53 am

Content Team

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