Positive Pay System for cheque, introduced by the Reserve Bank of India (RBI), is effective from January 1. New rule re-confirmation of key details may be needed for payments beyond Rs 50,000 under the new rule. A process of reconfirming key details of large value cheques such as the cheque number, cheque date, payee name, account number and amount - are the concept of Positive Pay.
Positive Pay is essentially a tool designed to detect fraudulent activity. It does this by matching specific information related to the cheque presented for clearing, like the cheque number, cheque date, payee name, account number, amount, and other details against a list of cheques previously authorized and issued by the issuer.