NEW PNB BANK RULE: Bank to ask customers before clearing cheques worth Rs 10 Lakh or more, check details here.
According to the latest reports by PNB (Punjab National Bank), it will clear cheques that are more than Rs. 10 lakh only after re-confirming it with the issuer. The PPS (Positive Pay System) will start on April 4 to protect customers against bank fraud.
PNB said in a press release that this new system will become mandatory from next month for cheques that are Rs 10 lakhs or above. This system was first introduced on January 1, 2021, for cheques worth Rs 50,000 or more but it was not mandatory at that time.
Last year, the RBI (Reserve Bank of India) had issued guidelines to the banks to implement the PPS system to protect customers against fraud for high-value cheques. It is seen that there has been a rise in fraudulent practices with high-value cheques in the past few months.
What is PPS?
As per this system made by the NPCI (National Payments Corporation of India), a customer issuing a high-value check like Rs 10 lakhs have to re-confirm details, it is a type of KYC. After the details are cross-checked, the cheque is cleared.
According to PNB, the customers have to share their details like account number, cheque number, cheque alpha code, issue date, amount, the beneficiary name for clearing cheques that are more than Rs 10 lakhs. The details have to be shared at least 24 hours before the cheque is deposited for clearance. The customers can share their details through internet banking, mobile banking, SMS banking etc.
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