The Reserve Bank of India (RBI) will introduce a new cheque clearance mechanism from October 4, 2025, enabling cheques to be processed within hours instead of the current two working days.
Under the new system, cheques will be scanned, presented, and cleared on a continuous basis during business hours, significantly reducing the clearing cycle from the present T+1 days to just a few hours. At present, the Cheque Truncation System (CTS) processes cheques in batches, taking up to two days for settlement.
To enhance efficiency, minimise settlement risks, and improve customer convenience, RBI will shift from batch processing to Continuous Clearing with On-Realisation Settlement. According to an RBI circular, the transition will occur in two phases—Phase 1 from October 4, 2025, and Phase 2 from January 3, 2026.
In Phase 1, a single presentation session will run from 10 am to 4 pm, with drawee banks required to issue positive confirmation for honoured cheques or negative confirmation for dishonoured ones by the end of the confirmation session at 7 pm. If no confirmation is provided, the cheque will be deemed approved for settlement.
RBI said the move is aimed at speeding up transactions, reducing delays, and offering customers a smoother banking experience.
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