Issuer will have the ability to ship cheque’s pic

Mumbai: Account-holders will quickly have the ability to ship to their financial institution the main points of a high-value cheque they challenge to 3rd events, which is able to allow safer and sooner clearance of cheques above Rs 50,000. The RBI in its financial coverage bulletins stated it was introducing the ‘positive pay’ mechanism for cheques, which is able to allow the financial institution to identify a forgery or misuse in issued cheques.
“Under this mechanism, cheques can be processed for fee by the drawee financial institution based mostly on info handed on by its buyer on the time of issuance of cheque. This measure will cowl roughly 20% of complete cheques issued within the nation by quantity and 80% by worth,” the RBI stated. At current, there may be straight-through processing below the cheque truncation system with optical/picture character recognition expertise, which scans and sends a picture of the cheque for clearing. ‘Positive pay’ will additional increase buyer security in cheque funds and scale back situations of fraud on account of tampering of cheque leaves.
ICICI Bank has been one of many early adopters of this characteristic. The financial institution had launched a cellular app that permits clients to add photos of the cheque they challenge to their very own banks. When the beneficiary submits the cheque for encashment, the main points are in contrast with these offered to the financial institution via the app. If they match, the cheque is honoured and in case of a mismatch, the cheque is referred to the issuer.

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