Closing system

Changes to rules from August 1: LPG cylinder price, BoB payment system

August is set to see rule changes, with banks being closed for 18 days, a change in Bank of Baroda’s

check payment system and an introduction to a positive payment system (PPS). Here’s everything you need to know about these changes.

Bank of Baroda has proposed to introduce mandatory PPS for checks issued for amounts above Rs 5,00,000. Customers will be required to digitally validate key verification information for authentication prior to payment. The system will enhance the security of banking operations by protecting customers against fraudulent transactions.

“Committed to ensuring the security of your banking transactions. With Positive Pay System, we are here to protect you against check fraud.

Checks of Rs 5 lakh and above are confirmed before payment,” Bank of Baroda informed its customers via its social media handle.

What is a positive remuneration system?

State Bank of India and Bank of Baroda are among the banks that alerted their customers to the PPS scheme before August 1 to cash high value checks.

According to the RBI website, PPS involves a process of reconfirming key details of high value checks. In this process, the check issuer submits minimal details about the check, such as name, date, and amount, electronically through a mobile app, SMS, UPI, or ATM.

When the check is presented to another bank for payment processing, the details are verified. The details must match for payment to be released to the depositor. Otherwise, the check will be returned unpaid. This system was developed by the National Payments Corporation of India (NPCI) for secure and verified transactions.

The prices of LPG gas cylinders will change

Liquefied petroleum gas cylinder prices were significantly increased this month. Although a subsidy of Rs 200 per cylinder has been announced for beneficiaries of Pradhan Mantri Ujjwala Yojana, the Rs 853 is still double the amount paid 7 years earlier.

The state-owned oil marketing companies decide the price on August 1 and trends indicate that prices may be slightly higher.