The Positive Pay System (PPS) is a cheque fraud prevention mechanism introduced by the Reserve Bank of India (RBI), where cheque details are re-validated before payment.
All account holders issuing cheque for amount of Rs.50,000.00 and above can utilize the Positive Pay System at their discretion. However, under the CTS grids dispute resolution mechanism, only cheques which comply with the instructions of the Positive Pay System guidelines shall be accepted.
In terms of RBI Circular No. DPSS.CO.RPPD.No.309/04.07.005/2020-21 dated September 25,2020 usage of Positive Pay System is henceforth made mandatory for cheques of Rs.5,00,000.00(Rupees Five Lacs) and above presented in clearing.