SBI Positive Pay System: To ensure the safety of their customers’ money, banks employ various measures at different times. One of these is preventing fraud through cheques. Strong safety systems are implemented by understanding fraudulent techniques and alerting customers to potential fraud attempts. In order to protect their customers from check-related fraud, State Bank of India (SBI), the country’s largest bank, has launched the Positive Pay System.
SBI’s Positive Pay System is a safety system introduced by the State Bank of India to prevent cheque-related fraud. It acts as a deterrent to fraud by detecting any alterations or changes made to the cheques. In this system, the person issuing the cheque needs to reconfirm all the cheque details with the bank, and cross-checks will be done during the payment process.
RBI Guidelines
As per the Reserve Bank of India (RBI) guidelines, all forms of check payments have been brought under the Positive Pay System from January 1, 2021. The Positive Pay System is considered a value-added safety measure that helps customers safeguard themselves from deception. It is a simple and easy process to use, providing customers with the assurance that their cheques are secure.
Process of SBI Positive Pay System
SBI’s Positive Pay System involves two processes: account registration and cheque submission. Customers who wish to avail of this facility need to register their cheque accounts with the Positive Pay System through an application form submitted at any branch or through optional channels. Customers are required to select the account level limit based on their risk perception, which could be any amount beyond a specified threshold.
Cheques Above the Threshold
As per information available on the bank’s official website, the Positive Pay System is mandatory for cheques and all other types of accounts such as current accounts, cash credits, and overdrafts above INR 10 lakhs. For cheques above INR 5 lakhs or more, it is compulsory for selected account level limits.
Cheque Deposit
Once registered for the Positive Pay System, customers need to provide the account number, cheque number, date, amount, and the name of the cheque issuer, along with the two digits at the bottom right or left of the MICR band, for cheques issued above the selected account level limit. Cheques can be deposited at any branch or through alternative channels. In cases where residence details are not provided, the cheque will be returned without payment, but no return fee will be charged.
