Positive Pay Cheque System to Go Live January 1, 2021. How will you inform your Bank?

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Positive Pay Cheque System to Go Live January 1, 2021. How will you inform your Bank?

#FinFiction

Which Bank will be the first to rollout WhatsApp PPS Informaton channel?



Banks have to provide multiple channels to account holders to inform about cheques issued from their accounts.

The channels could be any one of the following depending on the respective banks processess

  • Internet Banking

  • Mobile Banking

  • SMS

  • ATM

  • WhatsApp – Few Banks already active on WhatsApp Banking __

  • Google Assistant – Few Banks offering basic banking servies via Google Assistant

  • Amazon Alexa - Few Banks offering basic banking servies via Amazon Alexa


WhatsApp intimation channel looks simple and easy to use. Which Bank will be the first to offer WhatsApp intimatmation channel to it's customers ?

Suggested process flow for Retial customers. Retial customers can be defined who issue less than 5 cheques from their bank accounts daily.

The process flow for bulk customers i.e more than cheques per day may be different.

Internet Banking – Pre-requisite – Net Banking Login ID/Net Banking Password/Registered Mobile Number

Customer Logs into internet banking account.

Selects the respective cheque number from the list of unused cheques

Inputs the required detials i.e Amount etc against the unused cheque leaf

Saves the data

PlusPoint __ High Security, Account Holder has to login into net banking portal with an ID and Password

Possible Drawback __ Delayed receipt of OTP. Flucutations in net connectivity. Reluctance to login to net banking portal only for this activity.


Mobile Banking – Pre-requisite – Mobile Banking Login ID/Net Banking Password/Registered Mobile Number

Customer Logs into internet banking account.

Selects the respective cheque number from the list of unused cheques

Inputs the required detials i.e Amount etc against the unused cheque leaf

Saves the data

PlusPoint __ High Security, Account Holder has to login into mobile banking portal with an ID and Password

Possible Drawback __ Delayed receipt of OTP. Flucutations in net connectivity. Reluctance to login to mobile banking portal only for this activity.


SMS – Pre-requisite – Registered Mobile Number

Intimation through keywords through registered mobile number

a) SMS PPS Cheque Number eg:- 123456 _

bi) If the said cheque number is unused, system prompts for additional detials

bii) If theq said cheque number is already used, sytem msg's as used and process is terminated

PlusPoint __ No need to install any banking app

Possible Drawback __ Multiple steps to complete the activity


ATM – Pre-requisite – Active ATM Card / ATM PIN

a) Account Holder inserts ATM Card, chooses 'other services – Cheque PPS'

b) Keys in the cheque number

bi) If the said cheque number is unused, system prompts for additional detials

bii) If theq said cheque number is already used, sytem msg's as used and process is terminated


PlusPoint __ Highly secure

Possible Drawback __ Account holder has to physically visit the Bank ATM to complete this activity


WhatsApp – Pre-requisite – Registered Mobile Number. Nothing More—Nothing Less

a) Account Holders chooses Cheque PPS from the available key words

b) Inputs the cheque number

bi) If the said cheque number is unused, system prompts for additional detials

bii) If theq said cheque number is already used, sytem msg's as used and process is terminated


PlusPoint __ Customers are almost all the time on WhatsApp. Only 1 time preregistration required. No further passwords – static or dynamic required. No fear of transmission breakdown between the the process. No need to share any net/mobile banking passwords. No need to share ATM Card or ATM password.

Interaction can be customised in regional languages

Possible Drawback __ Exposure of Bank account detials to all accessing the customer's phone

Google Assistant – Pre-requisite – Registered Mobile Number

a) Account Holders asks the key words - Cheque PPS

b) Speaks the cheque number

bi) If the said cheque number is unused, system prompts for additional detials

bii) If theq said cheque number is already used, sytem msg's as used and process is terminated

Plus Point __ No need of separate Banking app to intimate to the bank regarding cheques issuance intimation.

Possible Drawback __ Exposure of Bank account detials to all accessing the customer's phone


Amazon Alexa – Pre-requisite – Registered Mobile Number

a) Account Holders asks the key words - Cheque PPS

b) Speaks the cheque number

bi) If the said cheque number is unused, system prompts for additional detials

bii) If theq said cheque number is already used, sytem msg's as used and process is terminated

Plus Point __ No need of separate Banking app to intimate to the bank regarding cheques issuance intimation.

Possible Drawback __ Exposure of Bank account detials to all accessing the customer's phone


References: NPCI CTS Circular No 4 dt October 17th, 2020

Quote

Positive Pay System for Cheque Truncation System

RBI/2020-21/41

DPSS.CO.RPPD.No.309/04.07.005/2020-21


September 25, 2020


The Chairman and Managing Director / Chief Executive Officer

All Scheduled Commercial Banks including Regional Rural Banks /

Urban Co-operative Banks / State Co-operative Banks /

District Central Co-operative Banks / Local Area Banks / Payment Banks /

Small Finance Banks / National Payments Corporation of India


Madam / Dear Sir,


Positive Pay System for Cheque Truncation System


Please refer to the Statement on Developmental and Regulatory Policies dated August 6, 2020 wherein Reserve Bank of India (RBI) had announced introduction of Positive Pay System for Cheque Truncation System (CTS).


2. 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.


3. National Payments Corporation of India (NPCI) shall develop the facility of Positive Pay in CTS and make it available to participant banks. Banks, in turn, shall enable it for all account holders issuing cheques for amounts of ₹50,000 and above. 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 ₹5,00,000 and above.


4. Only those cheques which are compliant with above instructions will be accepted under dispute resolution mechanism at the CTS grids. Member banks may implement similar arrangements for cheques cleared / collected outside CTS as well.


5. Banks are advised to create adequate awareness among their customers on features of Positive Pay System through SMS alerts, display in branches, ATMs as well as through their web-site and internet banking.


6. Positive Pay System shall be implemented from January 01, 2021.


7. This directive is issued under Section 10 (2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007).


Yours faithfully


(P Vasudevan)

Chief General Manager


Unquote



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