The Reserve Bank of India has introduced a new system to prevent check fraud. Now, after giving the check, the customer will give his details to the bank. After depositing the check in the bank, it will match the written details and the details provided by the customer. If a difference is found between the two, the check will be stopped with a red mark. This arrangement will be effective from January 1 next year.
Reserve Bank of Chief General Manager P. The new system has been named in the guidelines issued by Basudeban – Positive Pay System. Under this, important details need to be re-confirmed for checks over Rs 50,000. In this, the issuer of the check has to provide minimum details about the check through electronic means like SMS, mobile app, internet banking or ATM.
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It should give information about the date, name of the beneficiary, recipient and amount. These details will match before presenting the check for this payment. If any discrepancy is found, the information will be given to the providing bank and the presenting bank. The RBI has suggested that banks may make the arrangement mandatory for checks amounting to Rs 500,000 or more. Banks have been asked to make customers aware of this through SMS. In addition, banks will provide complete information about their branches, ATMs as well as their websites and internet banking.