Attention Bank Customers! New Rules/Restrictions for Cheque Transactions; Check Details

Punjab National Bank (PNB) will make Positive Pay System (PPS) mandatory for cheques of Rs 10 Lacs and above from today, April 4, 2022, in an effort to protect bank clients from large-value check fraud.

According to the Positive Pay System (PPS) designed by the National Payments Corporation of India (NPCI), a customer sending a high-value cheque must affirm a few key details, which are then cross-checked before the cheque is paid.

Customers of Punjab National Bank (PNB) must share account numbers, cheque numbers, cheque alpha codes, issue dates, amounts, and beneficiary names in order to clear high-value checks using PPS. At least 24 hours before the check is presented for clearing, these details must be shared with the bank.

Customers can share the information in the prescribed manner via internet banking, mobile banking, SMS banking, or their home branch. Only the PPS-registered cheques will be accepted through the dispute settlement method.

PNB had introduced PPS for cheques of Rs 50,000 and above presented in CTS clearing from January 1, 2021, as per RBI norms, which has now become required for cheques of Rs 10 lakh and above from today.