The RBI on Thursday decided to introduce a ‘positive pay’ mechanism to make check payment more secure, while ICICI Bank (ICICI Bank) introduced this facility in 2016 itself.
New Delhi. The Reserve Bank of India (RBI) has decided to introduce a ‘positive pay’ mechanism for all checks of value Rs 50,000 or more to make check payment more secure. This system will cover 20% of the total checks issued across the country and 80% of the transaction will be covered by the check based on the value. Let us tell you that Private Sector Bank, ICICI Bank (ICICI Bank) introduced this facility in 2016 itself.
How does a positive pay system work?
Under the positive pay system, the account holder will have to inform the bank about the check while issuing a check for Rs 50,000 or more. For this, the account holder has to share the photo of the front and back of the check with details such as check number, check date, payee name, account number, amount etc. When the beneficiary submits the check to the bank to be encashed, the bank will match the details of the check with the details already received through the positive pay system. The check will be cleared only if the details match. This will help prevent check related fraud.
Positive pay system in ICICI Bank
RBI has taken the initiative to introduce positive pay system in monetary policy, whereas ICICI Bank was offering this service to customers since 2016. ICICI Bank customers can access it on the iMobile app and take a photo of the check number, date, Payee name, account number, amount and the front and back of the check before handing over the check to the beneficiary.
When the photograph of the check for clearing comes from the beneficiary’s bank, it is merged with the details provided by the ICICI Bank customer through the iMobile application. If the details match then the check is cleared.
