SBI: New cheque payment system from January 2021

Public lender State Bank of India (SBI) will roll out a new cheque payment system from next year. Under the new ‘Positive Pay System’ or PPS for cheques, reconfirmation of key details will be needed for all payments above Rs 50,000.
The SBI PPS for cheques will come into effect from January 1, 2021. The new cheque payment system will add a layer of security to the current process. The issuer of the cheque will need to provide details such as account number, cheque number, amount, date and payee name with respect to cheque payments.
“As per RBI guidelines, we are introducing the Positive Pay System (PPS) w.e.f. 01/01/2021 to ensure added security where the cheque issuer now needs to provide details such as account number, cheque number, cheque amount, cheque date payee name with respect to the cheque payments,” SBI said on its website.

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Positive Pay System for Cheque Truncation System RBI 2021
1. Reserve Bank of India (RBI) had announced introduction of Positive Pay System for Cheque Truncation System (CTS).
2. 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 CTS. Any discrepancy is flagged by CTS to the drawee bank and presenting bank, who would take redressal measures.
3. National Payments Corporation of India (NPCI) shall develop the facility of Positive Pay in CTS and make it available to participant banks. Banks, in turn, shall enable it for all account holders issuing cheques for amounts of ₹50,000 and above. While availing of this facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheques for amounts of ₹5,00,000 and above.
4. Only those cheques which are compliant with above instructions will be accepted under dispute resolution mechanism at the CTS grids. Member banks may implement similar arrangements for cheques cleared / collected outside CTS as well.
5. Banks are advised 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.
6. Positive Pay System shall be implemented from January 01, 2021.
7. This directive is issued under Section 10 (2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
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The bank has asked its customer to give their option for the new cheque payment system. You can visit the nearest branch for further details.
A couple of months ago the Reserve Bank of India (RBI) decided to introduce the PPS for cheques. The announcement was made by RBI Governor Shaktikanta Das in August with customer safety in focus. The move is also aimed at reducing cases of cheque fraud and other malpractices with respect to cheque payments.