The details provided by the cheque issuer are going to be cross-checked with the presented cheque by Cheque Truncation System (CTS). (Express photo: Debashish Pachal, editing: Gargi Singh)The ‘Positive Pay System’ for cheques which was introduced by the Reserve Bank of India in September last year comes into effect from today. Under the positive pay system, an issuer a cheque will have to electronically submit certain minimum details of the particular cheque (such as date, name of the beneficiary, payee and amount) to the drawee bank. The details provided are then going to be cross-checked with the presented cheque by Cheque Truncation System (CTS). The Positive Pay System is a measure designed to detect any fraudulent activity related to cheque transactions.

Source: Indian Express January 01, 2021 11:48 UTC