Latest RBI Alert: Everything to Know About the Positive Pay System
The Reserve Bank of India (RBI) introduced ‘Positive Payment System’ for monetary transactions through cheques a few months ago. This directive by RBI is issued under Section 18 of Payment and Settlement Systems Act, 2007, Act 51 of 2007. RBI Governor Shaktikanta Das announced this in August 2020 from the point of view of keeping the issue of consumer safety in order and to lower the cases of cheque payments related frauds and abuses. The banks in light to this are advised to create requisite spread of awareness among their consumers on features of Positive Pay System through various mediums like SMS alerts, display in branches, ATMs as well as through their respective internet banking and online websites. Not only PPS safeguards the customers from fraudulent cases but also enhances the overall visibility of cheque activities, allowing a greater transparency over business finances . What is Positive Payment System? Positive Pay System (PPS) is essentially a measure designed to detect