The Reserve Bank of India (RBI) introduces a ‘Positive Pay’ tool to make the cheque payment safer and reduce the chances of fraud.


This mechanism will ensure faster clearance of cheques above Rs 50,000. The operational guidelines regarding the same will be issued later. At the time of issuance of cheques, all the cheques will be issued as per the account holder’s instructions. By this feature, almost 20 percent of transactions will be covered by volume and 80 percent transaction by value.

A positive step has been taken by RBI which will safeguard the interest of the account holders. This mechanism will help in saving the time of all the parties related to the cheque, unlike earlier where all the parties used to invest so much of their time in order to resolve the issue of the cheque.

What is the ‘Positive Pay’ Mechanism?

Positive Pay mechanism is a tool that will detect any fraud or mismatch in cheque and will also verify each and every detail mentioned in the cheque and will intimate the issuer of the cheque for examination, if any mistakes, mismatch, or any fraud found.

This tool will be adopted by all the banks, in order to prevent the customers against the following:

  1. Forged cheque
  2. Altered cheque
  3. Counterfeit cheque


How the ‘Positive Pay’ mechanism will work?

  1. At first, the details of the issued cheque such as cheque number, cheque date, Payee’s name, account number, amount, etc. will be shared by the issuer via the Positive Pay feature. An image of the front and backside of the cheque will also be shared by the issuer.
  2. Then, at the time of encashment of cheque by the beneficiary, the bank will compare the details of the cheque and the details as provided by the issuer through Positive Pay.
  3. The cheque will be honored by the bank if details get matched.
  4. But, in case of a mismatch of details, the cheque will be given back to the issuer for examination.

So, if the banks follow the above-mentioned step, then the money of the depositor will be secured.

Important points to remember

  • The positive pay mechanism covers only those whose value will be Rs 50,000 or more.
  • All the information related to cheque must be shared to the bank beforehand only via the Positive Pay mechanism.
  • Guidelines regarding the Positive Pay mechanism is yet to be issued by the RBI.
  • At present, for any cheque clearance, the facility of the Cheque Truncation System (CTS)  is operational in India.
  • The one bank which already started following this mechanism is ICICI Bank. The bank adopted this feature in the year 2016. The service of a Positive pay feature was introduced on the bank’s mobile application. 


Such features will help the bank to gain the customer's trust, as every customer wants that their hard-earned money should be safe and secure. 

Edited by Minu Mishra

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