NRI bank account holders should know about ‘Positive Pay System’

The system is applicable to all the Indian customers but holds importance to the NRIs because they are away from the India and location of their bank branches

PRAVASISAMWAD.COM

NRIs who are keeping their bank accounts in Indian Banks need to understand the new system that the Indian central Bank Reserve Bank of India announced. The new system is to safeguard all high value banking customers from fraud in withdrawal.

The system is applicable to all the Indian customers but holds importance to the NRIs because they are away from the India and location of their bank branches.

The system is in the form of ‘Positive Pay System’ for which the banks are sending notices to their customers through registered mails.

“The Positive Pay System, developed by the National Payments Corporation of India, is a process of reconfirming the key details of large value cheques. Under this system, a person issuing the high-value cheque submits certain details of that cheque like date, name of the beneficiary/payee amount etc. to his bank in advance. This helps the bank to verify the authenticity of the cheque before clearing the payment,” Gulf News reported.

The NRI bank customers should get tuned to the system as the high value cheques have to be pre-registered. If the information of large-value cheques are not pre-registered, it would be returned to the issuer without any charge

The system is applicable for cheques with an order of Rs50,000 and above. Banks are requesting the customers to avail the facility. Now optional for account holders, the system, according RBI, soon would be mandatory for all cheques carrying an order of Rs 50,000 and above.

The person who is issuing the cheque will have to submit details like date, name of the beneficiary, payee and the amount – to the drawee bank through channels like SMSes, mobile apps, internet banking and ATM.

The NRI bank customers should get tuned to the system as the high value cheques have to be pre-registered. If the information of large-value cheques are not pre-registered, it would be returned to the issuer without any charge.

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