Bank Of Baroda Makes New Guidelines For Cheque Payments


Customers of Bank of Baroda (BoB) will now have to make Positive Pay mandatory for cheques issued for Rs. 5,00,000 and more from August 1, 2022.

Customers will be required to digitally validate key cheque details for authentication prior to payment to prevent cheque frauds.

BoB has said in its official circular that “W.e.f. 01.08.2022, Positive Pay confirmation is proposed to be made mandatory for cheques issued for Rs.05.00 lacs & above. That means, cheques issued for these values shall be returned in the clearing/Intersol without payment, if positive pay confirmation is not provided on or after 01.08.2022.”

“BOB Customers are requested to provide key details of the cheque before handing over to the beneficiaries, so that Bank at the time of presentment for payment in CTS clearing (as well as at other than base branch of BOB) can pass the High Value cheques without any reconfirmation phone call by the base Branch,” the bank has further noted.

“Committed to ensure the security of your banking. With Positive Pay System, we are here to protect you from cheque frauds. Cheques of Rs. 5 lakh & above are confirmed before payment,” BoB has alerted its customers through its Twitter handle.



What is Positive Pay System?

Positive Pay is a part of the cheque clearing system under which the cheques will be processed for payment by the drawee bank based on information passed on by the account holder at the time of issuance of cheque.

Positive Pay System involves re-confirming of key details of the cheque by drawer to the Bank, which would be cross-checked with the presented cheque at the time of payment processing.

These are the 6 points that have to be provided for payment confirmation;

  • Cheque date
  • Payee name
  • Amount
  • Account number
  • Cheque number
  • Transaction code

If the provided key details match those on the real cheque submitted in the CTS clearing the cheque will be accepted; otherwise, it will be cancelled if Positive pay system confirmations are not made or provided.


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