The Reserve Bank of India (RBI) has decided to introduce a new clearing process for high-value cheques to enhance the safety of cheque payments. The apex bank will soon come up with a mechanism of 'Positive Pay' for all cheques of value Rs 50,000 and above, RBI Governor Shaktikanta Das announced on Thursday.
Under this mechanism, the drawee bank will process the cheques for payment basis the information passed on by its customer at the cheque issuance time. This, according to RBI, will "cover approximately 20 per cent and 80 per cent of total cheques by volume and value, respectively."
The central bank added that operational guidelines in this regard will be issued separately.
Under the Positive Pay System, a bank account holder shares the information of issued cheque to bank such as account number, amount, payee name, cheque number, cheque date, etc., accompanied with an image of the front and reverse side of the cheque, before transferring it to the beneficiary.
When the beneficiary deposits the cheque for collection, its details are compared with the ones provided to the bank via Positive Pay. The cheque is honoured if the details match.
"To enhance safety of cheque payments, it has been decided to introduce a mechanism of Positive Pay for all cheques of value ?50,000 and above. This will cover approximately 20 per cent and 80 per cent of total cheques by volume and value, respectively," Das said in a statement.
He further highlighted that in order to promote innovation in the financial sector, the RBI will create an innovation hub in India. Das also stated that "a scheme of retail payments in offline mode using cards and mobile devices, and a system of on online dispute resolution (ODR) mechanism for digital payments will also be introduced."