It’s a safety check for cheques, especially big ones. If customer is writing a cheque above ₹50,000, banks recommend to use it. For cheques above ₹5 lakh, RBI has made it mandatory to use the Positive Pay System.
If the cheque is for more than ₹50,000 but less than ₹5 lakh, using Positive Pay is not required, but strongly recommended for extra safety.
When customers use Positive Pay:
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Customers need to submit the cheque details to the bank in advance (like cheque number, date, amount, and who you’re paying).
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The bank will verify these details when the cheque is presented for payment.
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If everything matches, the cheque is cleared. If not, it gets rejected.
Cheques that go through Positive Pay are protected by the RBI’s dispute resolution system.That means: If there’s a problem (like fraud or a mismatch), the RBI will support you in resolving it — only if you used Positive Pay. Cheques using Positive Pay are safer and backed by RBI in case of disputes.