What is PPS in banking check? PPS Full Form in Banking Check

If you use a check to pay any person, then you must have heard the name PPS, i.e., Positive Pay System. By using this banking system issued by the RBI, you can avoid fraud with your check payment. By starting the positive system in August 2020 itself, the RBI has issued a guideline to all the banks that now all payments through checks will be passed through PPS.

What is PPS in banking check
What is PPS in banking check? PPS Full Form in Banking Check 2

If you want to know more information related to PPS, then you must read this post because in today’s post we will know in detail about what PPS in banking checks and PPS Full Form in banking checks.

What is the full form of PPS? What is the full form of PPS?

The full form of PPS is Positive Pay System; it is a system by the RBI to prevent check fraud under which the bank will have to give complete information related to itself and its account if customers pay more than a certain amount by check. In which you will have to provide the account number, check number, date issued, amount, and name of the person taking the payment to the bank.

Simply put, Positive Pay System (PPS) is an automated fraud detection tool with the help of which check fraud can be easily stopped. RBI, i.e., the Reserve Bank of India, had announced a positive pay system for this check truncation Truncation System (CTS) in August 2020, after which there was a significant reduction in check fraud.

Under the positive pay system issued by the RBI, if a person issues a check of more than  50000 to any of his customers, he will have to give this information to the bank first, and if he does not do so, the bank will cancel that check. And in this way, even if the check is completely correct, the check will not be paid to the beneficiary by the bank; i.e., before paying an amount of more than $50,000 through check, you will have to get permission from the bank, and only then can you pay a beneficiary. Can issue a check of more than  50000 to


To prevent check fraud, this system has been developed by the National Payments Corporation of India (NPCI), under which you will have to give complete information about the person to the bank to whom you are going to issue a check of more than  50,000. Under this, you will have to give the bank the following information about the beneficiary:

  • Name of Beneficiary
  • Account Number: _
  • Check Number
  • Date of Cheque
  • Amount of the cheque
  • photocopy of both sides of the check

This information given by you to the bank will be uploaded in the bank’s system, and the beneficiary who will receive this check from you will be identified, and when we come to the bank to receive the money, the banking system will automatically verify that check. If the check is verified by the banking system, then the money is given to the beneficiary by the bank.


Before the adoption of PPS by the banks, lakhs of rupees were withdrawn from people’s accounts through checks, and to stop this, the RBI took many tough steps, after which we got to see many benefits of the positive pay system, like

  • Fraud can be easily prevented by using fake checks through the Positive Pay System.
  • In the event of a lost check, the bank cannot give money under any circumstances.
  • There will be savings in the time taken to carry the check from one place to another.
  • Check clearing has become more secure and faster than before.
  • Check (cheque), then the details of both the payer and the payee are safe with the bank.

In today’s time, almost all Indian banks pay the check only by cross-checking with the check through CTS, i.e., the Check Truncation System. By doing this, it is an easy facility not only for the bank but also for both the payee and the payee.

We hope that you have liked this post related to PPS full form in banking. If you have read this post carefully, then you will know a lot about what a positive pay system. I got to know and learn something. Thank you for reading this post.

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