Understanding Positive Pay System necessary to encash cheques from August 1

Several banks including BoB and SBI have issued notifications asking customers to register under PPS before August 1 to encash high-value cheques

The Reserve Bank of India (RBI) has made it mandatory for cheques worth Rs 5 lakh or above to follow the Positive Pay System (CPPS) to be encashed. If the rules are not followed, the banks are allowed to refuse clearance of such cheques. Several banks including the Bank of Baroda (BoB) and the State Bank of India (SBI) have issued notifications to help the customers complete the PPS formalities.

What is the Positive Pay System?

"The concept of Positive Pay involves a process of reconfirming key details of large value cheques. Under this process, the issuer of the cheque