Changes in rules from August 1: LPG cylinder price, BoB payment scheme

August will be full of shocks and surprises as there will be some changes in rules, banks closed for 18 days, a change in the Bank of Baroda cheque payment system and the introduction of PPS

The month of August is set to witness some changes in rules from banks being closed for 18 days, to a change in Bank of Baroda's 

cheque payment system and an introduction to a Positive Pay System (PPS). Here's everything you need to know about these changes.

Bank of Baroda has proposed to introduce a mandatory PPS for cheques issued for amounts above Rs 5,00,000. Clients will have to digitally validate key cheque information for authentication before payment. The system will enhance the security of banking by protecting clients from fraudulent transactions.

“Committed to ensuring the security of your banking. With Positive Pay System, we are here to protect you from cheque fraud. Cheques of Rs 5 lakh & above are confirmed before the payment," Bank of Baroda notified its customers through its social media handle.

What is a positive pay system?

State Bank of India and Bank of Baroda are some of the banks that have alerted their customers about the PPS scheme before August 1 to encash high-value cheques.

According to the RBI website, PPS involves a process of reconfirming key details of large value cheques. In this process, the cheque issuer submits minimum details of the cheque like name, date, and amount electronically via mobile app, SMS, UPI or ATM. 

When the cheque is presented to another bank for processing payment, details get verified. Details have to match for the payment to be paid to the depositor. Otherwise, the cheque will be returned unpaid. This system has been developed by the National Payments Corporation of India (NPCI) for secure and verified transactions.

LPG gas cylinder prices to change

The liquid petroleum gas cylinder prices have been increased drastically this month. Although a subsidy of Rs 200 per cylinder was announced for the Pradhan Mantri Ujjwala Yojana Beneficiaries, the Rs 853 is still twice the amount paid 7 years earlier.

The public sector oil marketing companies decide the price on August 1, and trends indicate that prices can be raised a bit.