Bank Of Baroda to Lower Positive Pay Threshold for High-Value Cheques

Bank of Baroda has begun a phased reduction in the threshold for Positive Pay Confirmation on high-value cheques, aiming to enhance cheque security and prevent fraud.

As of 1 May 2025, Positive Pay is mandatory for all Cheque Truncation System (CTS) clearing cheques of ₹4 lakh and above, down from the earlier threshold of ₹5 lakh.

The bank will further reduce this limit in two phases:

·       From 1 August 2025: mandatory for cheques of ₹3 lakh and above

·       From 1 November 2025: mandatory for cheques of ₹2 lakh and above

How Can Customers Submit Cheque Details?

Before issuing a cheque, customers must share essential details with the bank for verification. These details are then matched against the cheque during clearing.

The information can be submitted through:

·       bob World mobile app

·       Net banking

·       Visiting a branch

·       SMS to 8422009988

·       WhatsApp Banking (8433 888 777)

·       Bank of Baroda’s official website

·       Call Center (1800 5700)

The mandatory fields include:

·       Account number

·       Cheque number

·       Cheque date

·       Amount

·       Transaction code

·       Payee name

Confirmations submitted by 6:00 PM are included in the next clearing cycle. Once submitted, details cannot be changed or deleted, though customers can still stop the cheque before processing.

Rules And Exceptions

·       Cheques are cleared only if the submitted details match the physical cheque and sufficient funds are available in the account.

·       Government accounts are exempt from physical submissions. They may submit scanned copies from registered departmental email IDs.

·       Cheques older than three months from the confirmation date are treated as stale and will not be processed.

·       Future-dated cheques are accepted.

Background On Positive Pay System

Bank of Baroda launched its Centralised Positive Pay System on 1 January 2021, following guidelines from the Reserve Bank of India. Since 7 July 2023, cheques of ₹5 lakh and above without Positive Pay confirmation have been returned.

The latest phased reduction further strengthens the bank’s commitment to secure and fraud-resistant cheque processing.

Conclusion

Bank of Baroda’s phased reduction in the Positive Pay threshold reflects its continued efforts to enhance cheque security and reduce fraud. By gradually making Positive Pay mandatory for lower-value cheques, the bank aims to protect customers and streamline verification processes. This proactive move supports safer banking practices and reinforces trust in cheque-based transactions.

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