We would like to inform you that from January 1, 2021, RBI has advised banks to make the facility of Positive Pay available to customers issuing cheques amounting to Rs. 50,000/- and above.
What is Positive Pay System?
RBI has introduced the Positive Pay System to further augment customer safety in case of cheque payments and reduce instances of fraud occurring on account of tampering of cheque leaves. For this process, the issuer of the cheque will be required to submit certain minimum cheque details (such as date, instrument number, amount, etc.) to the drawee (issuing) bank. The details of the cheque will be verified with the presented cheque by Cheque Truncation System (CTS), and any discrepancy will be flagged to the drawee bank and presenting bank for redressal measures.
With reference to the above, you can provide Positive Pay data for the cheques amounting to Rs. 50,000/- and above issued by you (viz. cheque date, 6-digit cheque number, amount, beneficiary name) either by logging in to the latest version of Kotak Net Banking, through Mobile Banking or by visiting the nearest bank branch on the day the cheque is issued by you or before it is handed over to the beneficiary.
Here’s how you can provide information for Positive Pay on Net Banking in a few simple steps:
Login to Net Banking with CRN/Username/Card No. & Password
Click on Service Requests in the main menu on the left
Go to the Chequebook requests menu
Click on Positive Pay (Cheque Confirmation)
Select the Account from the drop down menu, enter the rest of the details and click on Continue
Review the details and click on Submit
Here’s how you can use Positive Pay on Mobile Banking in a few simple steps:
Login to Mobile Banking Application with CRN and MPIN
Go to Positive Pay option under Banking tab
Fill in the details of the cheque
Review details and click on Submit
The details are to be provided only for cheques issued manually, on the same day the cheque is issued, or before it is handed over to the beneficiary
Kindly ensure that the cheque details submitted are correct, to keep it from getting rejected or returned
Availing the facility will be at the discretion of the customer. In case the details of manually issued cheques are not provided, existing clearing process will continue without Positive Pay check
Cheques that are compliant with the above process will be accepted under dispute resolution mechanism at the CTS grids i.e. in case the cheque issuance details are not shared with drawee (issuing) bank, the right to raise a complaint under Dispute Redressal Mechanism where an altered cheque is paid from the account will be forfeited
Positive Pay validation will be done only for the cheques for which issuance data has been provided to the bank
Despite Positive Pay details being available, cheque may be returned due to other technical and financial reasons during the scrutiny of the bank