PNB Launches a New Way to Protect Their Customers From Fraud

The government sector From April 4 onwards, Punjab National Bank (PNB) will only settle Cheques worth Rs 10 lakh or more following re-verification from the issuer. PNB said on Tuesday, according to PTI news, that this action was made to protect bank customers from the danger of fraud in the case of large-amount checks. From April 4, 2022, the Positive Payment System (PPS) will be required.

This new system launched on January 1, 2021

According to the Reserve Bank of India’s news and instructions, the CTS (Cheque Truncation Mechanism) clearing system for Cheques of Rs 50,000 and up was launched on January 1, 2021. CTS is a system for electronically clearing checks. The Reserve Bank of India has stated that, while it is open to the account user to use the facility, banks may consider making it mandatory for Cheques for Rs 5 lakh or more.

The system prepared by National Payments Corporation of India

PNB has announced that for Cheques worth more than Rs 10 lakh, a positive payment method will be required from next month. The National Payments Corporation of India designed this system (NPCI). Customers who issue high-value checks are obliged to re-verify certain critical facts under this arrangement. Before the cheque for payment is settled, those information are reconciled.

Details that needs to be given

Customers will be required to disclose information such as account number, cheque number, cheque alpha code, issue date, amount, and beneficiary name in order to clear high-value Cheques under PPS, according to PNB.

At least 24 hours before the check is presented for clearing, these details must be shared with the bank. Customers can exchange the information in the prescribed format via internet banking, mobile banking, SMS banking, or in their home branch.