What is Full Form of PPS?

PPS full form is Positive Pay System. This system is developed for the banking sector by the National payment corporation of India. PPS is used for confirming all important information of large value cheques. A cheque issued under PPS consists of all the essential information like amount, bank name, date, etc. These details can be submitted to the drawee bank for cross-checking through internet banking, ATM, SMS, etc, and if there exists any difference,  it is highlighted.

Importance of a positive pay system for customers

Sometimes the cheques are returned by banks. If the details of a large-value cheque, such as date, amount, etc are not pre-registered then the bank returns that cheque. To ensure that the banks are not returning the cheques the customers must ensure that the important details are provided within the time frame and in the exact manner set by banks. Only pre-registered disputes are resolved by a resolution mechanism. If by any chance the cheque is canceled customer will get an SMS mentioning the reason for cancellation.

Details to be mentioned in the cheque are

The following details must be mentioned in the cheque and provided to the bank:

• Account Number of Customer
• Transition Code
• Account Name of Customer
• Payee/ Beneficiary Name
• Cheque Number
• Cheque Amount
• Branch Office
• Cheque Date
• MICR CODE

Proper ways to submit the details

There are different ways to submit the details under Positive Pay System like net banking, the bank’s website, or in offline mode by visiting the bank branches, if the customer has not used electronic services before.

Advantages of a Positive Pay System

Listed below are a few advantages of the Positive Pay System:

• Prevention of cheque fraud by a faulty user is one of the greatest advantages of the Positive Pay System. If any of the detail is missing, the system alarms the differences like incorrect amount, proxy user, a cheque not present in the issue file, etc

• A Positive Pay System offers high value to businesses by providing certain benefits like reconciling payroll records, automatic check matching, etc. Financial organisations often place a higher value on persons, business partners, or customers. Financial institutions may find it easier to draw in these important commercial clients and companies thanks to the payee’s favourable pay.

• Automatic Fraud Removal Method: Positive pay systems enable financial institutions to save time and money. Without the affirmative pay system, the bank must check each and every check manually, which takes a lot of time, and contact the customer by phone or email.

This was all about the PPS Full form. Visit the General Knowledge page to discover more intriguing articles about full forms. Get in touch with the experts at Leverage Edu in order to kickstart your study abroad journey.