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Home >Money >Personal Finance >New rule to clear high value cheques from today: All you need to know

The Reserve Bank of India (RBI) has decided to implement ‘Positive Pay’ system to enhance the safety of cheque-based transactions. This new rule will come into effect from toda, 1 January 2021. Under the 'Positive pay system' for cheque re-confirmation of key details may be needed for payments beyond 50,000. The announcement of the same was made by RBI Governor Shaktikanta Das on 6 August 2020. Country's top lender State Bank of India (SBI) has announced that it is all set to roll out the positive pay system' for cheques. "Keeping all your transactions safe including those done via Cheques. SBI is introducing Positive Pay System from 1st January 2021 to make Cheque payment secure," SBI tweeted.

Here is all you need to know about new rule for cheque payments:

1) The concept of Positive Pay involves a process of reconfirming key details of large value cheques.

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2) Under this process, the issuer of the cheque submits electronically details related to the cheque presented for clearing, such as the cheque number, cheque date, payee name, account number, amount, and other details against a list of cheques previously authorized and issued by the issuer.

3) This facility is being developed by National Payments Corporation of India (NPCI).

4) Banks have to enable it for all account holders issuing cheques for amounts of 50,000 and above. While availing of this facility is at the discretion of the account holder.

5) Only those cheques which are compliant with above instructions will be accepted under dispute resolution mechanism at the CTS grids

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