The Reserve Bank of India (RBI) introduced the Positive Pay System (PPS) to enhance security and reduce fraud risks. This system is designed to safeguard high-value cheque transactions. Under PPS, any cheque with a value of ₹50,000 or more must be verified through this system. When a cheque is issued, the drawer provides details such as the cheque number, date, and amount to their bank. The bank then cross-checks these details when the cheque is presented for payment. If discrepancies are found, the cheque can be flagged or returned, thus preventing unauthorized transactions. This measure aims to provide an additional layer of protection against cheque fraud.