PNB Makes PPS Mandatory For <span Class='webrupee'>₹</span>5 Lakh And Above Cheque Payments. What Is It?

In a statement, PNB said, customers can use the PPS facility by providing the cheque details through the Branch office, Online Banking for individuals and businesses, Mobile Banking (PNB ONE), or SMS Banking. The details are to be submitted one working day before the cheque presentation/clearing date.

Further, the cheques that are registered in the PPS will only be accepted under the dispute resolution mechanism.

In line with RBI's guidelines, PNB introduced PPS for cheques of ₹50,000 and above presented in CTS clearing from January 01, 2021. However, later, the central bank recommended that availing this facility is at the account holder’s discretion and banks may consider making it mandatory for cheques of ₹5 Lakh and above.

Previously, the mandatory submission of cheque details in PPS was set at ₹10 Lakh & above.

What is PPS?

PPS was introduced by RBI in Cheque Truncation System (CTS) to enhance customer safety in cheque payments and to tackle fraud occurrences regarding the same.

Positive Pay's concept includes a process of reconfirming key details of large value cheques.

As per RBI's statement, under this process, the issuer of the cheque submits electronically, through channels like SMS, mobile app, internet banking, ATM, etc., certain minimum details of that cheque (like date, name of the beneficiary/payee, amount, etc.) to the drawee bank, details of which are cross-checked with the presented cheque by CTS. Any discrepancy is flagged by CTS to the drawee bank and presenting bank, who would take redressal measures.

The National Payments Corporation of India (NPCI) developed the PPS facility -- which requires customers to reconfirm essential details (account number, cheque number, cheque alpha code, issue date, amount, and beneficiary name) when issuing cheques of a certain amount.

PNB said, this adds an extra layer of security against any potential risk while processing such cheques.