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The PPS full form is the Positive Pay System. The development of PPS for the banking sector by the National Payment Corporation of India was necessary. Moreover, the use of PPS for confirming all important information of large value cheques is important. A cheque issued under PPS consists of all the essential information like amount, bank name, date, etc. Additionally, submission of details to the drawee bank for cross-checking through internet banking, ATM, SMS, etc, and cross-checking begins.
What is the Importance of a PPS for Customers?
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Sometimes, banks return cheques if the details of a large-value cheque, such as date, amount, etc. are not correct. Moreover, to ensure that the banks do not return cheques, the customers must ensure that the important details are provided within the time frame and in the exact manner set by banks. Furthermore, only pre-registered disputes are resolved by a resolution mechanism. If by any chance the cheque is cancelled, the customer will get an SMS mentioning the reason for cancellation.
Also Read: What is the Full Form of CTS?
What are the Mentionable Details on the Cheque under PPS?
Additionally, the following details must be mentioned in the cheque and provided to the bank for PPS:
- Account Number of Customer
- Transition Code
- Account Name of Customer
- Payee/ Beneficiary Name
- Cheque Number
- Cheque Amount
- Branch Office
- Cheque Date
- MICR CODE
Also Read: What is the Full Form of IFSC?
What is the Correct Way to Submit Details under PPS?
In addition, there are different ways to submit the details under PPS such as net banking, the bank’s website, or in offline mode by visiting any of the bank branches if the customer has not used electronic services previously.
Also Read: What is the Full Form of DD?
What are the Advantages of PPS?
Furthermore, these are the advantages of the PPS:
- Prevention of cheque fraud by a faulty user is one of the greatest advantages of the PPS. If any of the details are missing, the system alarms the differences like incorrect amount, proxy user, a cheque not present in the issue file, etc.
- A PPS offers high value to businesses by providing certain benefits like reconciling payroll records, automatic check matching, etc. Moreover, financial organisations often place a higher value on persons, business partners, or customers. Additionally, financial institutions may find it easier to draw in these important commercial clients and companies thanks to the payee’s favourable pay.
- There is an Automatic Fraud Removal Method present. The PPS enables financial institutions to save time and money. Without the affirmative pay system, the bank must check each check manually, which is time-consuming, and they need to contact the customer by phone or email.
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