Yesterday, like most of us, I casually checked my phone and saw an SMS from my bank.
It mentioned something called “mandatory Positive Pay Confirmation System for cheque payments.”
Honestly?
I had no idea such a system even existed.
No prior email. No explanation earlier. Just a message that sounded serious — almost alarming. That curiosity (and slight concern) pushed me to dig deeper. What I discovered is something every cheque user in India must understand today.
This article is based on that real experience — explained simply, clearly, and practically.
related article: cheque vs cheque return
The positive pay confirmation system is a bank-level security process designed to protect customers from cheque fraud.
In simple words:
If you issue a cheque, you must inform your bank in advance about its details.
Only then will the bank honour that cheque.
The bank cross-checks:
If anything doesn’t match, the cheque won’t be cleared.
That was my first question too.
The answer lies in rising cheque fraud cases and stricter banking controls guided by the Reserve Bank of India. Banks have been instructed to add extra verification layers for high-value cheque payments.
Instead of silently processing cheques, banks now want confirmation from the person issuing the cheque.
So when you receive that SMS, it’s not promotional or optional — it’s protective.
Cheque fraud doesn’t always look dramatic. Sometimes it’s as simple as:
Once money is gone, recovery is painful and slow.
The positive pay confirmation system ensures that:
No cheque gets cleared unless the drawer explicitly approves the details.
That single step blocks most fraud attempts.
Here’s the process in real-life terms:
Simple. Effective. Necessary.
you may also like to read: GOOD BYE Bounced cheque:How India’s UPI era is bringing a positive change for MSMEs.
After the SMS, the next confusion was obvious — “Where do I even submit this?”
Most banks like State Bank of India, HDFC Bank, ICICI Bank allow submission through:
Once you know where to click, it usually takes less than 3 minutes.
Not for every cheque — but definitely for high-value ones.
Most banks apply this rule for cheques above ₹2 lakh to ₹5 lakh. The exact limit varies by bank, but the direction is clear:
👉 High-value cheques without confirmation = high risk
This is the part many people don’t realise.
If Positive Pay is mandatory and you skip it:
For businesses and MSMEs, this can mean lost trust, delayed deals, and cash flow problems.
If cheques are still part of your payment routine, Positive Pay is now part of banking reality.
After understanding it fully, my perspective changed.
Benefits include:
It turns cheques from a risky paper instrument into a verified payment instruction.
Like many people, I had been issuing cheques without thinking much about what happens in between. That one SMS changed that.
The positive pay confirmation system isn’t just a banking update — it’s a necessary evolution to protect hard-earned money.
So next time your bank sends such a message, don’t ignore it.
Understand it. Use it. Benefit from it.
Tabrez is the voice behind BusinessZindagi, a platform focused on simplifying business, banking, compliance, and entrepreneurship for everyday Indians. With hands-on exposure to real-world financial processes, MSME challenges, and regulatory changes, he writes from the perspective of a practical user, not a textbook expert.
Important: This article is for informational purposes only and does not constitute financial or legal advice. Always refer to your bank’s official guidelines before taking action.
AI Disclaimer: Portions of this article were assisted by AI-based content generation tools. Every effort has been made to ensure accuracy, but human verification and professional advice are recommended.
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