Check clearing issue: your high value check may be rejected without internet, mobile banking, or visiting a branch


If you do not have access to internet banking for your savings account, you may find it cumbersome or tedious to issue checks worth over Rs 50,000 depending on the bank it is drawn on. This is because some banks, such as Axis Bank, have made the positive payment system mandatory for high value checks, with customers being required to inform the bank of the details of the check through online / mobile banking or a visit. physical at the branch. The bank must be notified before the check is presented for clearing, otherwise the check will not be rejected. This can create problems for people, especially the elderly, who do not have access to online / mobile banking services, either for security reasons or due to unfamiliarity with electronic transaction methods.

Some other banks, such as State Bank of India (SBI), Kotak Mahindra Bank, have also started to implement the positive payment system for checks over Rs 50,000, but these banks have made it optional for checks. clients. Some of the banks implementing positive payment started calling the customer who issued the high value check to verify details. This method would obviously be more user-friendly because the latter would not be unduly inconvenienced. However, make sure the call is taken, otherwise the check will be rejected for compensation.

The positive pay system is a process of reconfirming the key details of high value checks.

The Reserve Bank of India (RBI) had ordered banks to implement this system from January 1, 2021, to guard against check fraud.

Many banks have recently started texting and emailing their customers to inform them about the implementation of the new system.

For example, Kotak Mahindra Bank sent an e-mail to its customers informing them that they can now use the positive payment function for issuing checks in the amount of Rs 50,000 and more. However, Axis Bank has informed its customers by SMS that from September 1, 2021, checks issued for amounts greater than Rs 5 lakh must go through the positive paycheck.

What is the positive pay system?

As part of the positive payment mechanism, the issuer of the check i.e. you will need to verify certain details of the check issued by you to ensure that it is cleared i.e. processed and debited from your bank account. This information includes the date of the check, the 6-digit check number, the amount, the name of the payee, etc. This can be done either by going to the bank branch or by logging into your online or mobile banking account. Some banks may also offer customers the option of informing by SMS, ATM or e-mail.

In accordance with RBI guidelines issued last year, banks may activate this facility for all account holders for check amounts of Rs 50,000 and above, at the discretion of the account holder. However, banks may consider making it mandatory for checks over Rs 5 lakh.

Thus, a customer must check with his bank whether it has set up the positive payment system and from when this mechanism will come into effect.

The main banks that have set up a positive remuneration system

Axis Bank made it compulsory for each check greater than Rs 5 lakh to go through the positive payment mechanism. Axis Bank customers can submit their check details via the positive payment system form available at the nearest branch during branch office hours or via Mobile Banking, Retail Internet Banking and Corporate Internet Banking.

To check the details of the check via Internet banking, a customer can connect to his banking network, select the option “Services”, then “Check services” and then “Positive Pay”. You will need to enter the name of the payee / payee, check number, amount and date of the check.

According to a
SBI agency manager at Dilshad Garden agency in northeast Delhi, a client can opt for a positive payment mechanism and set their own limit. The customer can also opt for the positive payment mechanism for all checks. Once chosen, if the amount of the check exceeds this limit (or for all checks, as the case may be) then only the positive payment mechanism will take effect. If it was chosen for all checks, then you will need to make sure to verify all checks either via Internet banking, mobile banking, or by going to a bank branch. If the check is not verified by you, it will not be cleared.

According to the email sent by
Kotak Mahindra Bank to its customers: You can provide Positive Pay data for checks in the amount of Rs. 50,000 / – and above issued by you (i.e. check date, 6-digit check number, amount, payee name) either by logging into the latest version of Kotak Net Banking, via Mobile Banking or by visiting the nearest bank branch on the day the check is issued by you or before it is delivered to the payee. The use of this facility will be at the discretion of the customer. The existing compensation process will continue without a positive paycheck.

According to
ICICI Bank website, if a customer opts for the positive payment mechanism for a check, then the information will have to be validated via Internet banking or the iMobile application. The information can be validated using Internet banking as follows: Service request> Bank account> Checkbook / related DD> Positive payment.

According to
HDFC Bank website, the bank has introduced a positive payment mechanism for all checks of Rs 50,000 and above. If the check is issued by you, then you are required to share the details of the issued check at least 24 hours before the check is presented for clearing via email. A person will need to enter the following information in the sample email format below with the attached Excel sheet as confirmation of the check issued:

a) Serial number

b) Customer account number

c) Check number

d) Date of issue of the check

e) Check amount – amount should not be separated by commas

f) Name of the beneficiary – Beneficiary of the check issued by the account holder

According to the bank’s website, details should be sent to specified email credentials based on the location of the bank branch. For customers from northern areas like Delhi, Punjab, etc., information should be sent to [email protected] Likewise, for customers in South Indian states like Tamil Nadu, Kerala, etc., information should be sent to [email protected] Eastern region customers should send the email to [email protected] and Western region customers should send the email to [email protected] However, according to the bank manager of the Dilshad Colony branch of HDFC Bank, the customer will receive a call for verification of the issued check.

Why was the positive compensation mechanism introduced by RBI?

As mentioned above, the RBI had announced the positive pay system for the Check Truncation System (CTS) in its bi-monthly monetary policy of August 2020. The corresponding guidelines were published in September 2020. The objective of the mechanism positive compensation is to reduce instances of check fraud. According to the central bank, “The CTS-2010 standard specifying minimum security features on check sheets acts as a deterrent against check fraud, while the standardization of field locations on check forms allows for processing. direct through the use of optical / image character recognition. In order to further increase the security of customers in check payments and reduce cases of fraud arising due to the forgery of sheet checks, it was decided to introduce a positive payment mechanism for all checks from worth 50,000? and more. ”


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