(This story originally appeared in on Aug 07, 2020)MUMBAI: Account-holders will before long be ready to send to their bank the aspects of a high-value cheque they issue to third get-togethers, which will allow safer and a lot quicker clearance of cheques higher than Rs 50,000. The RBI in its monetary policy announcements mentioned it was introducing the ‘positive pay’ mechanism for cheques, which will empower the bank to spot a forgery or misuse in issued cheques.
“Under this mechanism, cheques will be processed for payment by the drawee bank dependent on information handed on by its client at the time of issuance of cheque. This evaluate will cover somewhere around 20% of whole cheques issued in the region by volume and 80% by value,” the RBI mentioned.
At current, there is straight-by means of processing below the cheque truncation system with optical/picture character recognition technological know-how, which scans and sends an image of the cheque for clearing. ‘Positive pay’ will even more augment client basic safety in cheque payments and cut down circumstances of fraud on account of tampering of cheque leaves.
ICICI Bank has been one of the early adopters of this attribute. The bank had released a cellular app that permits consumers to upload photographs of the cheque they issue to their own banks.
When the beneficiary submits the cheque for encashment, the particulars are when compared with those supplied to the bank via the app. If they match, the cheque is honoured and in scenario of a mismatch, the cheque is referred to the issuer.