Bank of Baroda set to introduce new cheque payment rules from June 1; Know details
The bank said that the customers will have to reconfirm cheque details only when the amount is more than Rs 2 lakhs
Bank of Baroda is set to bring some key changes to its cheque payment rules from June 1, 2021. The bank will make ‘Positive Pay Confirmation’ mandatory for customers in order to avoid incidents of fraud and trickery during payments made via cheques.
“We are committed to making your banking transactions secure. And with the Positive Pay System, we are here to offer you protection against cheque frauds,” Bank of Baroda tweeted.
The bank said that the customers will have to reconfirm cheque details only when the amount is more than Rs 2 lakhs.
“Customers are requested to provide us advance intimation of cheques issued to the beneficiaries so that Bank at the time of presentation in CTS clearing can pass the High-Value cheques without contacting the customers,” BoB quoted on the website.
What is Positive Pay Confirmation?
It is a process of reconfirming key details of high value cheques. Customers are supposed to submit details such as cheque number, cheque date, payee name, account number and amount electronically to get clearance from the bank.
The Reserve Bank of India (RBI) implemented the system of ‘Positive Pay’ from January 1, 2021. This was done to improve the safety around cheque based transactions. The facility is developed by National Payments Corporation of India (NPCI).
Availing the ‘Positive Pay’ facility is at the discretion of the customer unless your bank makes it mandatory, as in the case of BoB. In other banks, customers can opt for this additional safety measure in case the amount surpasses Rs 50,000.
Important details for BoB customers
> A cheque of ₹50,000 and above can be confirmed. But it’ll now be mandatory to opt for the facility if the cheque amount is Rs 2 lakh or more.
> There is no option for modification or deletion of a registered confirmation in any mode.
> The cheque will be passed if provided details matches with the actual cheque presented in the CTS clearing.
> Confirmations submitted/verified up to 6 pm (daily) through any channel/ mode will only be processed for the next clearing session. Confirmation through Branches can be provided during the normal business hours. Rest all the modes/channels will be available 24×7 to provide the Positive Pay confirmations.
> A reference number will be shared through SMS on the registered mobile number for each of the successful submission of Positive Pay confirmation.
> Customers will have to maintain sufficient funds up to the presentment/payment of the issued cheque/s either confirmed or not.
> Confirmations must be provided through any one mode only- Mobile Banking, Net Banking, Branch visit, SMS, Call Center.
> Stale cheques (3 months older from the date of confirmation) will not be accepted.
Meanwhile, Vijaya Bank and Dena Bank were merged with BoB on April 1, 2019. This was a part of Centre’s plan to consolidate 10 public sector banks with four mega state-owned banks in order to make them fiercely competitive.
BoB has still not asked customers of the two merged banks to update their IFSC codes yet and an announcement regarding the same is awaited.