Skip to main content

RBI’s new Cheque Payment rules set to kick in from January; Here’s all you need to know

 From January 1, 2021, a new cheque clearing mechanism will come into effect in a bid to check banking fraud. The Reserve Bank of India rolled out a ‘Positive Pay System’ a couple of months ago under which those making payments of over Rs 50,000 will need to reconfirm some key details.


To put it simply, Positive Pay is essentially a tool designed to detect fraudulent activity. It does this by matching specific information related to the cheque presented for clearing, like the cheque number, cheque date, payee name, account number, amount, and other details against a list of cheques previously authorized and issued by the issuer.


“To further augment customer safety in cheque payments and reduce instances of fraud occurring on account of tampering of cheque leaves, it has been decided to introduce a mechanism of Positive Pay for all cheques of value Rs 50,000 and above. Under this mechanism, cheques will be processed for payment by the drawee bank based on information passed on by its customer at the time of issuance of cheque. This measure will cover approximately 20 per cent and 80 per cent of total cheques issued in the country by volume and value, respectively,” RBI had said back in August.


The central bank then released detailed guidelines about the new cheque payment mechanism in September.


Here’s all you need to know about the new cheque payment rule of the RBI set to kick in from next year:

The concept of Positive Pay involves a process of reconfirming key details of large value cheques.  

Under this process, the issuer of the cheque submits electronically, through channels like SMS, mobile app, internet banking, ATM, etc., certain minimum details of that cheque (like date, name of the beneficiary/payee, amount, etc.) to the drawee bank, details of which are cross-checked with the presented cheque by Cheque Truncation System (CTS). Any discrepancy is flagged by CTS to the drawee bank and presenting bank, who would take redressal measures.

National Payments Corporation of India (NPCI) shall develop the facility of Positive Pay in CTS. They will also make this available to participating banks. In turn, these banks shall then enable it for all account holders issuing cheques for amounts of Rs 50,000 and above.

While the option to avail this facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheques for amounts of Rs 5,00,000 and above.

Only those cheques which are compliant with the instructions will be accepted under dispute resolution mechanism at the CTS grids.

Member banks are also free to implement similar arrangements for cheques cleared/collected outside CTS as well.

Banks have been advised by RBI to create adequate awareness among their customers on features of Positive Pay System through SMS alerts, display in branches, ATMs as well as through their web-site and internet banking.

Source Link

ADVOCATES AND LEGAL CONSULTANTS"








We are India’s Leading Law Firm








“The firm has always strives to create and implement innovative and effective methods of providing cost-effective, quality representation and services for our clients and will continue to meet and exceed the expectations of our valued clients.”
















–    DR ANUPAM KUMAR MISHRA (ADVOCATE, FOUNDER-LEXIS AND COMPANY).
















Get in Touch








LEXIS AND COMPANY.
















C/O: DR ANUPAM KUMAR MISHRA.
















OFFICE: A1B/26, JANAKPURI, GROUND FLOOR,
















NEW DELHI,, DELHI, 110058.
















INDIA.
















lexisandcompany@gmail.com
















CALL: +91-9830333388.


Labels:

Comments

Post a Comment

Popular posts from this blog

Section 58B of The Advocates Act - Special provision relating to certain disciplinary proceedings

 Section 58B The Advocates Act Description (1) As from the 1st day of September, 1963, every proceeding in respect of any disciplinary matter in relation to an existing advocate of a High Court shall, save as provided in the first proviso to sub-section (2), be disposed of by the State Bar Council in relation to that High Court, as if the existing advocate had been enrolled as an advocate on its roll. (2) If immediately before the said date, there is any proceeding in respect of any disciplinary matter in relation to an existing advocate pending before any High Court under the Indian Bar Councils Act, 1926 (38 of 1926), such proceeding shall stand transferred to the State Bar Council in relation to that High Court, as if it were a proceeding pending before the corresponding Bar Council under clause (c) of sub-section (1) of section 56: Provided that where in respect of any such proceeding the High Court has received the finding of a Tribunal constituted under section 11 of the Indian B
Post a Comment
Read more

POONAM VERMA VS. ASHWIN PATEL & ORS (10 MAY, 1996)

     POONAM VERMA VS. ASHWIN PATEL & ORS (10 MAY, 1996) INTRODUCTION The medical profession is perhaps the noblest profession among any remaining professions in India. For a patient, the specialist resembles God. What's more, God is trustworthy. In any case, that is the patient's opinion. As a general rule, doctors are individuals. Furthermore, to fail is human. Doctors might submit a slip-up. Doctors might be careless. The care staff might be imprudent. Two demonstrations of carelessness might bring about a lot more pressing issue. It very well might be because of gross carelessness. The sky is the limit. In such a situation, it is basic to figure out who was careless, and under what conditions. For this situation, the Supreme Court separated carelessness, impulsiveness, and foolishness. An individual is supposed to be a careless individual when he/she unintentionally submits a demonstration of exclusion and disregards a positive obligation that he/she ought to have perfor
Post a Comment
Read more

Case Laws related to Defamation in favour of ClaimantCase Laws related to Defamation in favour of Claimant. TOLLEY Vs, J.S FRY & SONS LTD – (1931) Facts The defendants were owners of chocolate manufacturing company. They advertised their products with a caricature of the claimant, who was a prominent amateur golfer, showing him with the defendants’ chocolate in his pocket while playing golf. The advertisement compared the excellence of the chocolate to the excellence of the claimant’s drive. The claimant did not consent to or knew about the advertisement. Issue The claimant alleged that the advertisement suggested that he agreed to his portrait being used for commercial purposes and for financial gain. He further claimed that the use of his image made him look like someone who prostituted his reputation for advertising purposes and was thus unworthy of his status. At trial, several golfers gave evidence to the effect that if an amateur sold himself for advertisement, he no longer maintained his amateur status and might be asked to resign from his respective club. Furthermore, there was evidence that the possible adverse effects of the caricature on the claimant’s reputation were brought to the defendants’ attention. The trial judge found that the caricature could have a defamatory meaning. The jury then found in favor of the claimant. Held The House of Lords held that in the circumstances of this case – as explained by the facts – the caricature was capable of constituting defamation. In other words, the publication could have the meaning alleged by the claimant. The Lords also ordered a new trial limited to the assessment of damages. NEWSTEAD V LANDON EXPRESS NEWSPAPER LTD, (1939) Facts: A newspaper published a defamatory article about Harold Newstead. However, another person with this name brought an action in libel. He claimed that the article had been misunderstood as leading to him. The defendant newspaper recognised that they published the article. Also, they denied that they had the intention of being defamatory of him. Consequently, the claimant argued that the newspaper was under a duty. The duty was to give a clear and complete description of the correct person. Moreover, the claimant argued that the defendants were in breach of the duty. Issues: The issue in Newstead v London Express Newspaper, was if the reasonable persons would have understood the words complained of to refer to the plaintiff. Held: The Court of Appeal stated that in accordance with the current law on libel, liability for libel does not depend on the intention of the defamer; but on the fact of the defamation. Accordingly, a reasonable man, in this case a newspaper publisher, must be aware of the possibility of individuals with the same name and must assume that the words published will be read by a reasonable man with reasonable care.

  Case Laws related to Defamation in favour of Claimant.  TOLLEY  Vs,  J.S FRY & SONS LTD – (1931) Facts The defendants were owners of chocolate manufacturing company. They advertised their products with a caricature of the claimant, who was a prominent amateur golfer, showing him with the defendants’ chocolate in his pocket while playing golf. The advertisement compared the excellence of the chocolate to the excellence of the claimant’s drive. The claimant did not consent to or knew about the advertisement.   Issue The claimant alleged that the advertisement suggested that he agreed to his portrait being used for commercial purposes and for financial gain. He further claimed that the use of his image made him look like someone who prostituted his reputation for advertising purposes and was thus unworthy of his status. At trial, several golfers gave evidence to the effect that if an amateur sold himself for advertisement, he no longer maintained his amateur status and might be aske
1 comment
Read more