Changes in RBI Rules: Cheque-Pics the new normal

With the world running towards technology and embracing its magic, we are witnessing some drastic changes in every field. Financial institutions are taking up digital spaces for smooth and quick results. Plastic money has been the show-stopper all this while, but cheque-pics could be the new deal now.

RBI plans on launching the ‘positive pay schemes’ in January 2021 that is supposed to help decrease the bank frauds and forgery all over. Now that people have adjusted to the online systems, the banks are taking it a notch higher to reduce crime rates when it comes to transferring money through various accounts.RBI

RBI’s ‘Positive Pay Schemes’

This feature shall ensure safety and might avoid a lot of fraud that happens when it comes to transfers, but how? The National Payments Corporation of India (NCPI) will make it mandatory for the people who pay by cheques to take a picture before paying. The ‘positive pay system’ shall be an inseparable part of the cheques truncation system (CTS) that is available in every bank.

If you are giving a cheque to someone else, then before you hand it over to them, you have to take a picture if it. The picture should then be uploaded on the bank’s app. In simple words, if you have an account in the Axis bank, then you have to upload the picture of your cheque on that Axis bank app.

This practice of cross-checking the cheques before the beneficiary withdraws them is supposed to increase the transaction safety. Once you upload the picture of any cheque, the details shall be checked by the bank. Those details have to match with the beneficiary’s details before the beneficiary withdraws the money. If the details do not match then, the CTS shall take optimum and legal measures.

Key-points of ‘Positive pay systems’ introduced by RBI

This feature won’t be applicable for small amounts, that is when there is any cheque above 50,000 only then this feature has to be taken into consideration. However, transactions above five lacs shall witness a mandatory impact of ‘positive pay systems’ for safety purposes.

Other than that, the RBI expects the banks to create awareness about this new feature so that it does not seem foreign when it is put into effect in 2021. The cheque issuers are supposed to upload all the details electronically under this system. For any disputes regarding cheque transactions or fraudulent activities, the ‘positive pay systems’ shall be of the essence ad shall be trusted completely. This system can also be applicable on the cheques that have been cleared in the near past, and even on those that do not fall under the CTS lines.

The ‘positive pay systems’ theoretically seem to be very promising. Now, only the time can decide whether they prove to be helpful or the increase more crimes when it comes to online dependence. The systems could be at risk of hacking that could result in evacuating all the online data of cheques and transactions to a web farm. However, we hope that these systems prove to be remedial against forgery and other money-related crimes.


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