With the rising concerns of bank frauds and misleading, the Reserve Bank of India has introduced a new rule that complies with the regulations of the banks’ existing plans of scrutinizing cheques that are beyond the value of 50,000. In this new “positive pay system” the cheques with the same denomination will be scrutinized in an automated system to find any loopholes and to prevent any kind of frauds therein. NPCI will develop the software in CTS and then make it available to the partner banks.
The new rule details
In the new “positive pay system” rules provided by RBI, the cheque that has an amount of 50,000 or more will be scrutinized in an automated system and the details will be checked to prevent any kind of bank fraud or scams. In this system, the cheque issuer will have to submit details like name of the beneficiary, date, payee amount, etc to the receiver bank through electronic devices like SMS, ATM, mobile app, etc. for the scrutiny by CTS in the cheque provided by the issuer. If any issue is found in the system then it will be informed to the bank for further redressal.
Why there was a need for such a move?
This move was necessary because many bank frauds take place through cheques. Under this rule, any payment of the given amount will be directed to the automated system for scrutiny and any issue found will be addressed by the bank effectively. This shall decrease bank frauds and keep the money of the common people safe.
Going by facts, there are many bank users in our country who make mistakes while filing forms or cheques for any bank transactions related purposes. Thus, it can be that they make mistakes while filling in the details of the cheques before submitting. This automated system is designed to cancel such cheques that have any issue with it. And if the owner is real and no fraud is taking place then it can cause problems to the real owner. Thus, there must be a window for re-correction of any details provided by the cheque owner before canceling it so that they do not face more problems with that.
The Policy Times suggestion
- Given the fact that so many bank cheque frauds take place in our country, this is a good move by the RBI to hold a clasp against such frauds. But the consumers must be well aware of this new rule and the banks must ensure this happens or else people will be more confused during the cheque payments.
- Under this rule, the cheques that are not compliant with this new rule will be canceled. But this must not be the case as there can be some errors while filling up the cheques by the actual cheque owners and canceling the cheques can bring up more issues. There must an option to re-evaluate the cheque details before cancelling it upfront.