What is PPS Full Form in Banking?
The PPS Full Form in Banking is Positive Pay System. The NPCI created this technology specifically for the banking industry to double-check the vital information on large-dollar-amount checks. The necessary details, such as the bank name, the sum to be withdrawn, etc., are included on the face of a positive pay system cheque.
Likewise, you can send these particulars to the drawee bank electronically by online banking, ATM, SMS, etc. When issuing a high-value check, the drawee bank does a thorough check of the information against previous issues and flags any discrepancies.
All customers of private and public banks in India who have written checks totaling Rs 50,000 or more will soon be able to take advantage of this service, thanks to a directive from the Reserve Bank of India.
However, account holders are not obligated to take advantage of this perk, although banks are required to do so if the value of the cheque is Rs five lakh or more.
You may experience a returned check once in a while. Some financial institutions have policies in place whereby a high-value check will be rejected if the sender has not first registered the check’s specifics with the institution, including the date, amount payable, etc.
The customer is responsible for ensuring that the necessary information is delivered to the bank within the time frame specified, so that high-value checks can be cleared without any complications.