New Delhi: From Jan. 1, 2021, your cheque of a larger amount of Rs 50,000 and above will bounce unless you intimate your bank in advance on drawing up such a cheque. The new system introduces a double check on the cheque transactions. 

The Reserve Bank of India (RBI) last week announced a new “Positive Pay” system for Cheque Truncation System (CTS) to prevent fraudsters emptying your bank account with fake cheques or tampering of your cheque leaves. The scheme involves a process of reconfirming key details of large value cheques.

If you are issuing a larger amount cheque, you are required to inform your bank about it electronically through channels like SMS, mobile app, Internet Banking, ATM, etc., providing certain minimum details of that cheque like date, name of the beneficiary, payee and amounts.

These details will be cross-checked when the cheque is presented for payment in the CTS. Any discrepancy will be immediately flagged by CTS to the drawee bank and presenting bank, who would take redressal measures. The RBI advisory asks banks to make it mandatory in case of cheques for amounts of Rs 5 lakh and above.

Only those cheques that are compliant with the instructions will be accepted at the CTS grids. Banks have been advised to implement similar arrangements for cheques cleared and collected outside CTS.