In 2024, the Reserve Bank of India (RBI) reported more than 13,000 cases of cheque fraud across the country. This alarming trend highlights the challenges many individuals and businesses face with financial security. It’s essential to remain vigilant and informed to protect ourselves from such unfortunate situations.

RBI has introduced PPS to respond to rising fraudulent practices in cheque transactions. This system signifies a leap forward in making banking truly about keeping money safe and a reliable custodian of customers' trust.

• What is Positive Pay System?

The Positive Pay System verifies key details of the cheque, such as the date, the amount, and the payee's name before the cheque is cleared. It is an additional layer of security and a safety net, ensuring that only legitimate transactions are cleared. 

• Why Is PPS Important?

Prevents Unauthorised Alterations: PPS helps avoid unauthorised transactions by verifying the cheque details before money is moved from one account to another. If discrepancies are found in the verification alert, the bank can take the necessary actions to stop the fraudulent activity immediately.

• How PPS Works?

The Positive Pay System is straightforward, yet its impact is significant. For it to work effectively, customers must register cheque details if it is for ₹5 lakh or more, before it's issued.

• How to Register For PPS?

Customers have multiple convenient modes to register. Here is a quick guide to choosing the best option suitable for you to register for PPS with South Indian Bank:

1. Go to the Home Screen
2. Click on Service Request Tab
3. Click on Cheque Book
4. Choose a Positive Pay System

1. Go to the Home Screen 
2. Click on the Service Request Tab 
3. Choose Positive Pay System

For those who prefer a more traditional approach, you can visit a bank branch near you and personally submit a physical form.

• Key Details for Registration

Providing accurate and complete cheque details is crucial for the effective use of the Positive Pay System. Here's what you need to remember when registering for a cheque transaction in your SIB account.

1. The cheque number
2. The date it's drawn for
3. The payee or beneficiary's name
4. The exact amount written on the cheque

This detail-oriented approach creates a reliable buffer against unauthorized changes. By cross-checking these key details, the bank verifies the authenticity of each transaction, drastically reducing the chances of fraudulent activities.

• Why is PPS considered as a Mandatory Compliance?

Incorporating the Positive Pay System into your banking routine isn't merely a suggestion—it's a requirement. Compliance is key, as non-compliance results in the return of  the clearing cheques that aren't registered under PPS. This mandate ensures there's no room for fraudulent cheques to slip through unnoticed, highlighting the seriousness of the matter and the need for your active participation.

Only PPS-compliant cheques are eligible for official dispute resolution processes. If there's any issue or disagreement over a transaction, having registered your cheque with PPS provides an added layer of protection and facilitates smoother dispute management.

This mandatory aspect highlights the seriousness with which the bank views cheque security. It shifts the standard procedures towards a more proactive stance against financial fraud, emphasizing the importance of detailed verification in maintaining trust.

• Benefits of Registering for the Positive Pay System

Using the Positive Pay System offers significant advantages for cheque transactions.

Enhanced cheque transaction safety: Enhanced safety tops the list by securing transactions before they're cleared. This added layer of security means cheque details are cross-verified, reducing the likelihood of unauthorized alterations.

Simplified resolution of disputes: Another standout benefit is the streamlined resolution of disputes. With PPS, the bank has already verified the details, making it easier to resolve any discrepancies, efficiently. This process can be a lifesaver when addressing issues quickly and effectively.

Protection against fraudulent cheque clearances: Additionally, protecting against fraudulent cheque clearances enhances overall trust in the banking system. Customers can feel more confident in their transactions, knowing their bank is actively working to safeguard their assets through systematic checks.

Initiating the use of a Positive Pay System is simple. Whether you prefer using mobile banking, internet banking, or visiting the bank branch, there's a convenient option for everyone.

• Key Take Away!

Embracing PPS in your routine is more than just a technical requirement; it's a proactive strategy for financial security. By familiarizing yourself with the process and regularly registering your cheques, you not only comply with banking protocols, but also actively participate in securing your financial landscape.

Remember, PPS is a crucial tool in the fight against financial fraud.

So, why wait? Start registering your cheques today and participate in a secure, trustworthy banking experience. This small step today fortifies your financial future, bridging the trust between you and your bank.

Disclaimer: The article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of The South Indian Bank Ltd. or its employees. The South Indian Bank Ltd and/or the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial/non-financial decisions based on the contents and information’s in the blog article. Please consult your financial advisor or the respective field expert before making any decisions.