What is PPS in banking?

Let me help you get an idea of what is PPS in banking. PPS, or Positive Pay System, is a security feature that is designed to prevent cheque fraud. Under this system, consumers furnish all the details of the cheque to the bank, and there, the cheques are verified before clearing the mentioned amount. This system is safe and adds protection and accuracy in cheque transactions.

What is PPS Meaning in Banking?

In banking, PPS, or Positive Pay System protects you from cheque fraud. By sharing your cheque details with the bank, you can be assured that everything matches before processing it for payment and the fund is transferred to the actual person without any mistake.

Here are some of the positive aspects of this system:

• PPS provides added security for cheque transactions and helps to prevent fraud.

• It is a simple process where you provide cheque details upfront for verification.

• This system helps to reduce the risk of unauthorised or altered cheques clearing your account.

• The system ensures smoother and more reliable cheque processing, reducing disputes and delays.

This is the meaning and benefits of PPS systems, but if you still have any doubt, you can ask a bank official about it.

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PPS meaning in Banking, includes a new electronic cheque authentication method from the RBI. According to the RBI, between April and September 2020, there were 64,681 crores worth of fraud transactions in India, with fake or forged cheques accounting for a sizeable portion of that total. So, the introduction of Positive Pay is undoubtedly a boost for banks as counterfeit cheque culprits' techniques advance with each passing day.

What is PPS mandate in banking?

The PPS full form in bank is Positive Pay System. This enables you to exchange cheque details with your bank before the bank processes the cheque. This extra security measure is intended to combat the growing number of cheque fraud incidents that have garnered media attention over the past year.

• Not all cheques will require Positive Pay verification. For cheques worth Rs. 50,000 or more, this procedure is advised. 

• At least 24 hours before the cheque is presented for clearing, the details of the cheque must be given by email.

• ​​​​​​​The email must contain an Excel sheet with the following information attached:

1. Serial Number

2. Your account number

3. Cheque number

4. Cheque issue date

5. Cheque amount 

6. Name of the payee/Beneficiary name

• The beneficiary's name must be written exactly as it appears on the cheque, and the information must be given in English. 

• You will automatically receive a confirmation email from the bank once it has received your request.

• The bank will cross-verify the information after receiving the email from the registered email address of the cheque issuer.

• Your request for Positive Pay will either be approved or denied by the Bank, and the Bank will email the cheque issuer to confirm approval or disapproval.

• If there is a mismatch, the request will be denied, and after double-checking the cheque details, a new Positive Pay request can be submitted. 

While understanding the PPS meaning in Banking, please be aware that for security reasons, a Positive Pay request can only come from the registered email ID of the person who issued the cheque.

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While net banking such as RTGS, NEFT, IMPS has become a popular type of transaction process, depositing cheques are still in vogue, especially among the older generation. While transferring money with the help of cheques many people have been scammed. To avoid these scams and to check banking fraud, the Reserve Bank of India (ROI) has introduced a 'positive pay system' or PPS for cheques. Under this process an individual has to re-confirm the key details for transactions beyond Rs. 50,000. This method was implemented on January 1, 2021. This is what is PPS in banking.

Let us dig deeper into what is PPS in Indian bank.

What is PPS in bank of India?

Under the method PPS (Positive Pay System), the issuer of the cheque will need to submit details electronically through SMS, mobile app, internet banking or ATM. Details such as date, name of the beneficiary, payee, and amount to the drawee bank are required.

All the details will be reviewed before the cheque is presented and if any discrepancies are found by the cheque truncation system (CTS) the matter will be undertaken by RBI. 

Banks, in turn, shall enable it for all account holders issuing cheques for amounts of Rs 50,000 and above. While availing of this facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheques for amounts of Rs 5,00,000 and above," the RBI said.

This is what is PPS in banking meaning in simple words. I hope you got the gist.

My friend informed me about the newly launched PPS system. The Reserve Bank of India introduced the Positive Pay System for Check Truncation System (CTS) to promote consumer safety in cheque payments and prevent cases of fraud resulting from the manipulation of cheque leaves. According to the Reserve Bank of India, the overall volume of illicit transactions in India between April and September 2020 was Rs. 64,681 crores, with fake cheques responsible for a large portion. We must know what is PPS in banking.

What is PPS in Bank of India?

The Centralised Positive Pay System (CPPS) for cheques of Rs 50,000 and above for CTS was introduced and implemented by the Bank of India on January 1, 2021. It is an effort to improve safety and reduce cheque-related fraud by reconfirming crucial data of large-value cheques. You must promptly inform the bank of the required details of the issued check like an account number for drawers, the number on the cheque, the date of the cheque amount, and the name of the payee.

How does PPS work?

We all prefer electronic options such as NEFT and RTGS, according to the RBI, checks are still a popular choice for some of us. You must communicate cheque details such as the payee's name, issue date, and amount with your bank through email before issuing a cheque. When you give the check to the bank for CTS Clearing payment, the bank will verify the item details received with the ones you send. The bank may investigate any difference and take appropriate measures if necessary. 

Facts about PPS:

1) You must supply the details through email at least 24 hours before the check is presented for clearing

2) You must supply all information in English, with the beneficiary name written exactly as it appears on the check.

3) An automatic acknowledgement email will be issued to you once the bank has received your request.

4) The Bank will cross-verify the details after receiving an email from the check issuer's registered email address.

5) The Bank will accept or reject your Positive Pay request, and the check issuer will get an email confirmation of approval or denial.

Now you know what is PPS in banking.