The Reserve Bank of India has changed the rules for high value cheque clearing. The RBI has introduced a new system to enhance consumer protection in cheque payments and reduce fraud caused by tampering with cheque sheets. The RBI has introduced a positive pay system for cheque of Rs 50,000 or more. The RBI will issue the necessary guidelines in this regard.
Before handing over the cheque to the beneficiary under the positive pay system, the check information declared by the account holder such as cheque number, cheque date, Pay name, account number, amount etc. has to be shared along with the photo on the front and reverse side of the check. When the beneficiary submits the check for encashment, the bank will compare the check details provided through Positive Pay. The check will be cleared only if both the information are identical.