Positive pay system for cheque payments to come into effect from January 1: RBI

In order to check banking fraud, the RBI has decided to introduce from January 1, 2021, the ‘positive pay system’ for cheque, under which re-confirmation of key details may be needed for payments beyond Rs 50K. Availing this facility would be at the discretion of the account holder. However, banks may consider making it mandatory for cheque amounts of Rs 5 lakh and above.