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Consumers in trouble due to checks of more than Rs 50,000? What are the new rules of RBI? Find out.

The RBI had in August 2020 announced a positive pay system for the Czech Transaction System (CTS).

Mumbai: If you do not have internet banking facility for your savings bank account, you may face problems in issuing checks worth more than Rs 50,000. This is because banks have now started implementing Positive Pay System (PPS).

Notably, the Reserve Bank of India (RBI) had in August 2020 announced a positive pay system for the Czech Transaction System (CTS). Under this rule, banks can apply this facility to all account holders at their discretion for checks amounting to Rs 50,000 or more.

The check will be rejected
According to RBI rules, before issuing a check, you have to inform the bank about it, otherwise your check will not be accepted. However, these rules can cause problems for senior citizens, who do not use net banking or mobile banking services.

Enforcement of rules by these banks
Some banks, including Axis Bank, have made PPS mandatory for checks over Rs 50,000. Under which customers will have to give check details to the bank through net / mobile banking or by visiting the branch.

State Bank of India (SBI), Kotak Mahindra Bank has introduced a positive pay system for checks exceeding Rs 50,000. The purpose of enforcing this rule is to protect consumers. This system will prevent check fraud.

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