- Date : 06/03/2023
- Read: 3 mins
The Punjab National Bank’s implementation of the Positive Pay System and submission process
In a recent press release, Punjab National Bank (PNB) announced the implementation of a Positive Pay System (PPS). PPS is being implemented to reduce the possibility of fraud in high-value cheque payments. It will be applicable on cheque payments of Rs 5 lakh and above and is being made effective from 5 April 2023. This is a reduction in the threshold from the previous limit of Rs 10 lakh and above.
What is PPS?
PPS is devised by the National Payments Corporation of India (NPCI). As per PPS, accountholders are required to submit details of the cheque that they are issuing, to the bank. Bank here refers to the bank where they maintain their savings account and on which the cheque is drawn. The submission must be made before the cheque is presented for clearance and in one of the various modes specified by the bank.
If you are a PNB customer
PNB customers can furnish cheque details through online personal and business banking, SMS banking, mobile banking, or by visiting a branch. The submission must be made at least one working day before the cheque presentation or clearing date.
With the start of the calendar year 2021, PNB implemented PPS for all cheques of Rs 50,000 and above as per RBI’s recommendation. However, the use of PPS was discretionary for the account holder. It is only now that PNB is making the use of PPS mandatory for cheque issuances of more than Rs 5 lakhs.
To submit PPS details through online banking you must follow these steps,
- Login to PNB internet banking through your credentials,
- In the Value Added Services section, select Positive Pay System,
- Click on the drop-down menu and choose your account number corresponding to the issued cheque,
- Enter the details required under PPS, viz. cheque number, cheque alpha, cheque date, cheque amount and beneficiary name,
- Enter the password for confirming the transaction, and click on the submit,
- After submission, an update will appear on the screen confirming that the PPS information was successfully submitted.
On the other hand, PPS information is submitted through SMS to 9264092640 or 5607040. The details required to be sent via SMS includes the,
Full account number, 6-digit cheque number, 3-character cheque alpha printed on the cheque, cheque amount in numerical only and cheque date in DDMMYYYY format.
PNB confirms the successful receipt of the PPS information by sending a reply to the customer. It reads, “your request for PPS data of cheque no. X in account number X has been accepted”.
PNB has provided a detailed guideline on the implementation of PPS as a mandatory requirement for high-value cheque payments. Accountholders can familiarise themselves with the new requirement to ensure timely clearance of their cheques.