Q15: What is the primary purpose of the "Positive Pay System" (PPS) in the context of cheque clearing?

To ensure cheques are cleared within 1 hour

To provide a fraud-prevention mechanism where the drawer pre-confirms cheque details

To allow cheques to be written in pencil

To replace the need for a signature on the cheque

✅ Correct Answer: B

The Positive Pay System (PPS) is a fraud-prevention system where the drawer pre-confirms cheque details such as the cheque number, date, payee, and amount.

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Bank Promotion Exam Guide

Q15: What is the primary purpose of the "Positive Pay System" (PPS) in the context of cheque clearing?

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