RBI introduces Positive Pay System for Cheques.
                     RBI INTRODUCES POSITIVE 
PAY SYSTEM FOR CHEQUES
INTRODUCTION
• To reduce instances of fraud, the Reserve Bank of India (RBI) has 
introduced a new mechanism known as 'Positive Pay' for all the 
cheques valued above Rs. 50,000.
• As per RBI Governor Shaktikanta Das, the positive pay system is 
introduced to enhance the safety of cheque payments.
Source: India TV
KEY DETAILS
• The Reserve Bank of India (RBI) has decided to introduce a 
mechanism of Positive Pay for all cheques of value Rs 50,000 and 
above.
• This will cover approximately 20 percent and 80 percent of total 
cheques by volume and value, respectively.
Source: The Financial Express
RBI
• The Reserve Bank of India is India's central bank, which controls 
the issue and supply of the Indian rupee. 
• Governor: Shaktikanta Das
• Bank Rate: 4%
• Headquarter: Mumbai
Source: The Financial Express
WHAT IS POSITIVE PAY?
• The positive pay mechanism is used by the commercial banks to 
companies as a fraud-prevention system against forged cheques. 
• In this one needs to share the details of the cheque issued with the 
bank before handing it over to the beneficiary.  
Source: Jagaran Josh
PROCESS
• First of all one needs to share the details of the cheque issued with 
the bank before handing it over to the beneficiary. 
• The details include cheque number, cheque date, payee name, 
account number, amount, etc. 
• When the beneficiary submits the cheque in the bank to cash it, If 
the details match, the encashment is done.
Source: The Economic Times
WHAT IS REVERSE POSITIVE PAY 
MECHANISM?
• In the Reverse Positive Pay mechanism, the issuer monitors the 
cheques on its own and inform the bank to decline a cheque.
• The bank notifies the company daily about the cheques presented 
to it and clears the cheques approved by the company. 
Source: Short Info
 METHOD USED BY BANK IN INDIA?
• ICICI bank follows the procedure of positive pay since 2016 
irrespective of the amount on the cheques. 
Source: The Economic Times
CHEQUE TRUNCATION SYSTEM 
• The Cheque Truncation System (CTS) is for clearing cheques.
• It is operational pan-India and presently covers 2 per cent and 15 
per cent of total retail payments in terms of volume and value 
respectively.
Source: Zee Business
STANDARDS OF CTS
• The average value of a cheque cleared in CTS presently is Rs 
82,000. 
• The CTS-2010 standard specify minimum-security features on 
cheque leaves acts as a deterrent against cheque frauds.
Source: NDTV.com
OTHER INITIATIVES BY RBI
• To promote the innovation in the financial sector, RBI will set up an 
innovation hub in the country.
• Also, a scheme of retail payments in the offline mode via cards and 
mobile devices, and a system of ODR (Online Dispute Resolution) 
mechanism will also be introduced soon. 
Source: Livemint