The method of check payment will be changed from 1st January 2021

 The method of payment of checks will be changed from January 1. In the new year, there will be a major change in the rules regarding check payments. The Reserve Bank of India (RBI) will implement a positive pay system for checks from January 1, 2021 to curb banking fraud. It will also prevent fraudulent checks. Checks paying more than Rs. 50,000 will have to be matched with this system. 

The system will issue checks for SMS (mobile app), internet banking, and ATM. How will a positive pay system work? Under the positive pay system, the person issuing the check has to re-inform the date of the check, the name of the beneficiary, the payer, and the amount paid through electronic means. The person issuing the check may provide this information electronically through SMS, mobile apps, internet banking, or ATM. After that, these notifications will be checked before the payment is checked. If an error is found in it, then mark it on the draw bank (the bank to which the check is to be paid) and the current bank (from which the check is issued) through the 'CTS - Check Truncation System' Will be given. The RBI has said that necessary steps will be taken in such a situation. 

Similarly, there are many more steps. Rules will apply for payments of more than Rs 50,000. New rules will apply to bank account holders for all payments of Rs 50,000 and above. However, the account holder will decide to take advantage of this facility. The bank may require a check for Rs 500,000 or more.