RBI Governor Shaktikanta Das on Thursday stated that the banking system will transfer to a constructive pay observe in cheque transactions to curb frauds.
Beneath the ‘constructive pay’ system, a buyer who points the cheque clicks an image of the cheque earlier than handing it over to the beneficiary and uploads the identical on the financial institution’s cell software.
“To reinforce security of cheque funds, it has been determined to introduce a mechanism of ‘Optimistic Pay’ for all cheques of worth Rs 50,000 and above, Das stated after asserting the bi-monthly coverage assessment.
The restrict of Rs 50,000 will cowl roughly 20 per cent of transactions by quantity and 80 per cent by worth, he stated, including operational pointers on this regard shall be issued quickly.
Since 2016, the second largest personal sector lender ICICI Financial institution has such a facility for all cheques regardless of the quantity.
By following such a system, a financial institution is aware of of a cheque being drawn by the client even earlier than it’s deposited by the beneficiary into her account. Earlier than clearing switch of funds, the financial institution’s govt can cross-check the small print of the cheque which has come for clearance with the one shared by the client prematurely, banking specialists stated.
With the assistance of this system, any cheque the place any kind of fraud has occurred can’t be cleared in any respect and therefore a depositor’s cash might be protected, they added.