Module: | CTS & Positive Pay Framework
Q14: Consider the following statements regarding the "Positive Pay System" (PPS) introduced for cheque clearing:
1. It acts as a fraud-prevention mechanism where the drawer reconfirms key details (date, name of payee, amount) to the bank.
2. The facility is available at the discretion of the account holder for all cheques of value ₹50,000 and above.
3. Banks may consider making it mandatory for cheques of value ₹5 lakh and above.
4. If a customer does not avail of this facility, the cheque may not be accepted under the dispute resolution mechanism.
2. The facility is available at the discretion of the account holder for all cheques of value ₹50,000 and above.
3. Banks may consider making it mandatory for cheques of value ₹5 lakh and above.
4. If a customer does not avail of this facility, the cheque may not be accepted under the dispute resolution mechanism.
✅ Correct Answer: D
All statements are correct.
The PPS is a fraud prevention tool enabled for cheques of ₹50,000+ (Statement 1 & 2). While optional at that level, banks can mandate it for cheques above ₹5 lakh (Statement 3). A key consequence of non-compliance is the potential exclusion from the dispute resolution mechanism (Statement 4).
The PPS is a fraud prevention tool enabled for cheques of ₹50,000+ (Statement 1 & 2). While optional at that level, banks can mandate it for cheques above ₹5 lakh (Statement 3). A key consequence of non-compliance is the potential exclusion from the dispute resolution mechanism (Statement 4).