What Is PPS in Banking? [India’s Positive Pay System]

In this article, we’re answering “what is PPS in banking?”

We’ll also be sharing how it works, why it’s used, and which transactions qualify.

This article is part of our free series on how to send and receive money, including bank checks, bank transfers, and more, which you can access by clicking here.

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

  1. What Is PPS in Banking?
  2. How Does a Positive Pay System (PPS) Work?
  3. Frequently Asked Questions
  4. Ready to Explore Your Options?

What Is PPS in Banking?

PPS in banking refers to India’s Positive Pay System. It is a mandatory security feature to enhance the security of cheque payments between banks in India and reduce fraud. Using PPS is mandatory when issuing cheques above Rs. 10,00,000 (approx. USD 12,000). However, it is available to individuals sending transactions as low as Rs. 50,000 (approx. USD 600).

The information that cheque issuers need to provide when using PPS includes the following:

  • Cheque Number
  • Cheque Amount
  • Cheque Date
  • Beneficiary

How Does a Positive Pay System (PPS) Work?

Positive Pay System (PPS) works by issuing key payment information to the bank where the cheque is being drawn. This information includes cheque number, cheque amount, cheque date, and the name of the beneficiary.

How Long Does a Positive Pay System Service Take?

The Positive Pay System service requires one day of processing prior to the cheque being cleared. In other words, the individual issuing the cheque needs to provide the necessary information to the issuing payment at least one business day prior.

What Is the Minimum Banking Amount for Positive Pay Systems?

The minimum banking amount to use the Positive Pay System is Rs. 50,000. However, it is mandatory to use PPS when issuing a check of Rs. 10,00,000 in value. There are additional reasons why you may want to make use of PPS, including in the case of dispute resolution which can only be resolved when PPS is used.

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Frequently Asked Questions

Below are three of the most common questions that we receive from people looking into what PPS in banking is. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.

What Is PPS For Cheque Clearing?

PPS for cheque clearing refers to the use of the Positive Payment System. The Positive Payment System is a cheque-clearing system in India where the issuer of a cheque submits key information about the individual receiving the cheque to the issuing bank. Importantly, this information must be provided to the issuing bank at least one business day prior to the check being cashed. Otherwise, the individual will need to return after the PPS information has been processed.

Is PPS Mandatory For Cheques Above 5 Lakhs?

At certain banks, PPS is mandatory for a cheque above 5 Lakhs. In particular, Punjab National Bank, which is one of India’s largest scheduled public sector banks, requires PPS to be used for any check issued above this level. This was first introduced in March 2023 and was introduced to reduce fraudulent transactions and protect the bank’s customers.

What Is PPS Bank of India?

PPS Bank of India refers to India’s Positive Payment System, which was first introduced by the Reserve Bank of India (RBI) in 2022. This is a key system for combating tampering with cheques and fraudulent deposits. In other words, using PPS protects the individuals issuing the check and ensures that withdrawals are accurate and only for the intended amounts to the intended recipient.

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