New Delhi: State-owned Bank of Baroda (BoB) has made a major announcement for its customers, that will impact clearance of cheques.
The public sector bank has asked customers are to provide key details of cheques before handing over to the beneficiaries so that Bank at the time of presentment for payment in CTS clearing / Branch / InterSol (as well as on counter) can pass the High Value cheques without any re-confirmation phone call by their base Branch.
Customers are requested to provide key details of cheques before handing over to the beneficiaries so that Bank at the time of presentment for payment in CTS clearing / Branch / InterSol (as well as on counter) can pass the High Value cheques without any re-confirmation phone call by your base Branch.
Cheque of Rs 50,000 & above can be confirmed through Positive Pay but it is mandatory for Clearing cheques of Rs 5 Lakhs & above. All such clearing cheques are being returned w.e.f.23.01.2023, if Positive Pay Confirmation is not provided. Subsequently, all cheque transactions (including Branch/Inter-sol) of Rs.5 Lakhs & above without Positive pay confirmation are being returned w.e.f.07.07.2023 to prevent frauds.
Bank of Baroda Positive Pay Threshold Reduced
Bank of Baroda has said that to further curb high value cheque related frauds, it has been decided to bring down the mandatory threshold limit of Positive Pay Confirmation for all CTS clearing cheques to Rs 2 lakhs & above from the existing limit of Rs 5 lakhs & above in a phased manner as mentioned below:
1. Rs 4 Lakhs & above: From 01 May 2025
2. Rs 3 Lakhs & above: From 01 August 2025
3. Rs 2 Lakhs & above: From 01 November 2025
Available Modes/Channels for confirmation are bobworld (Mobile Banking), bobworld Internet (Net Banking), through Base Branch, SMS on 8422009988, WhatsApp Banking (8433 888 777) and Bank’s website, BoB said.
What is Positive Pay System and how it makes Cheques secure
In a bid to check banking fraud, the Reserve Bank of India had introduced the ”positive pay system” for cheque, under which re-confirmation of key details may be needed for payments beyond Rs 50,000.
This Cheque payments rule of positive pay system will come into effect from January 1 2021. While availing of this facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheques for amounts of Rs 5 lakh and above.
The concept of Positive Pay involves a process of reconfirming key details of large value cheques.
Under this process, the issuer of the cheque submits electronically, through channels like SMS, mobile app, internet banking, ATM, etc., certain minimum details of that cheque (like date, name of the beneficiary / payee, amount, etc.) to the drawee bank, details of which are cross checked with the presented cheque by CTS.
Any discrepancy is flagged by CTS to the drawee bank and presenting bank, who would take redressal measures.
 has reduced the threshold limit for positive pay system. Check new rules for cheque clearance.){kind=link}