Positive Pay System enables an additional security layer to the cheque clearing process.
The Positive Pay System, developed by the National Payments Corporation of India, is a process of reconfirming the key details of large value cheques (Rs. 50000/- and above). The details are cross-checked during the cheque clearing process.
Positive Pay System provides additional level of security to cheque clearing process. Through Positive Pay, cheques will be processed for payment by the drawee bank based on information received by their customers at the time of issuance of cheque. When the beneficiary submits the cheque for realisation through clearing, details of cheque received by the customer through Positive Pay will be validated. By using Positive Pay System, It is MANDATORY that cheque details for amount of Rs. 5,00,000/- and above must be shared by the account holder (drawer of the cheque) at the time of issuance of the cheque(s). For the cheques of amounts from Rs. 50,000/- to Rs. 4,99,999/- is optional as of now.