Your high-value cheque might bounce, even if you did everything right

Lenders have added PPS, a layer of verification system to prevent cheque frauds and protect customers

If you’re writing a cheque for a large amount, just signing and handing it over is no longer enough. Banks have made it mandatory to high-value cheques, usually of Rs 5 lakh and higher, go through the Positive Pay System (PPS) to prevent fraud. If you skip this step, your cheque may get rejected, even if everything else is in order.

 

What Is the Positive Pay System?

 

PPS is a security measure introduced by the Reserve Bank of India (RBI) to reduce fraud in cheque transactions. It requires the issuer of the cheque to share key details, such as cheque number, date, amount, and beneficiary name, with the bank before the cheque is presented for clearing.

 

The bank then verifies this information with what is presented during the cheque-clearing process. If there’s a mismatch, the cheque is flagged or stopped.

 

PPS Mandatory for high-value cheques

 

Most major Indian banks have now made PPS mandatory for cheques of Rs 5 lakh and above. Some banks allow voluntary submission for amounts above Rs 50,000, but mandate it beyond Rs 5 lakh. Here's what top banks say:

 

State Bank of India: Mandatory for cheques of Rs 5 lakh and above.

 

HDFC Bank: Mandatory for cheques above Rs 5 lakh. Can be submitted via inernet banking or mobile App.

 

Axis Bank: Recommends PPS for cheques above Rs 50,000; mandatory from Rs 5 lakh onwards.

 

Union Bank of India: PPS mandatory from Rs 5 lakh upwards.

 

IDBI Bank and Bank of India: Also follow similar thresholds and encourage customers to use PPS proactively.

 

Cheque fraud often involves:

 

Alteration of amount or payee name

 

Cheque theft and misuse

 

Fake endorsements or cloning

 

Without PPS, the bank only sees the physical cheque. But with PPS, your pre-shared details act as a second layer of verification.

 

How to use PPS

 

Most banks allow submission through:

 

Internet banking

 

Mobile apps

 

Email or SMS (in some cases)

 

Visiting the branch

 

Key details to submit:

 

Cheque number

 

Cheque date

 

Payee name

 

Amount

 

Account number

 

Always confirm with your bank’s official communication or customer service for the exact process.

 

Consequences of skipping PPS

 

If PPS is mandatory for your cheque amount and you skip it:

 

Cheque will not be cleared

 

It will be returned unpaid

 

You may face delays, bounced cheque charges, and inconvenience to the recipient