India’s largest public sector bank, State Bank of India (SBI) will implement a new cheque payment system from January 1. The new cheque payment system is named ‘Positive Pay System’ (PPS). The new system is aimed at reducing the cases of cheque fraud and other malpractices with respect to cheque payments.
“As per RBI guidelines, we are introducing the Positive Pay System (PPS) w.e.f. 01/01/2021 to ensure added security where the cheque issuer now needs to provide details such as account number, cheque number, cheque amount, cheque date payee name with respect to the cheque payments,” SBI said on its website.
Under the new system, the issuer of the cheque will need to provide details such as account number, cheque number, amount, date and payee name with respect to cheque payments.