In the recent past, it has been observed that incidence of Non Borrowal Frauds are in rise. Most of the frauds are done through cloned cheques, making alteration in the original cheque, forged cheques or stolen cheques. Fraudsters are using our Banking Channel to encash the fraudulent cheque by depositing at their Bank to be presented in clearing.

To prevent fraud in payment of cheques, Bank have adopted Centralized Positive Pay (CPPS) mechanism as a risk mitigating tools introduced by NPCI as per RBI notification dated 25 September 2020.

This mechanism can be made successful when the customers provide the details of cheque issued by them in CPPS functionality before payment in clearing.

In this mechanism

Customer after issuance of the cheque will provide the details of the instrument to branch. The customer can also upload the details through internet banking or file upload.

CBS collects the data and send to NPCI.

NPCI store the data and verify the credentials while processing cheques through Inward clearing based on the combination of : cheque number * Amount + Drawee MICR Code and put flag as :

Flag P : Exact match the instrument will be passed for payment if otherwise in order.

Flag D: Exact matched found duplicate instrument- The instrument will be pushed to OLR and the Branch has to take a decision whether to pass or return the instrument depending on the actual status of the instrument.

Flag S: No record found- The instrument will be passed for payment il otherwise in order.