New Delhi: The Reserve Bank of India (RBI) will implement a new cheque clearance system from 4 October, enabling cheques to be processed and settled within hours instead of the current one-to-two working day period.
This decision by the RBI aims to enhance customer experience, reduce settlement risk and improve efficiency in the Cheque Truncation System (CTS).
Under the new mechanism, CTS will shift from batch processing to Continuous Clearing and Settlement on Realisation (CCSR). Cheques will be scanned, presented and cleared continuously between 10:00 AM and 4:00 PM on business days.
The drawee bank will issue either a positive confirmation for honoured cheques or a negative confirmation for dishonoured ones.
The rollout will take place in two phases. In Phase 1 (4 October 2025–2 January 2026), banks must confirm cheque status by 7:00 PM the same day; unconfirmed items will be deemed approved for settlement. In Phase 2 (from 3 January 2026), banks will have a three-hour window to confirm each cheque from the time it is presented, with unconfirmed items again treated as approved.
Once settlement is completed, presenting banks must credit customers’ accounts immediately, but no later than one hour after receiving confirmation data, subject to standard safeguards.
The RBI has instructed banks to ensure customer awareness of the changes and to be prepared for participation in the continuous clearing system on the scheduled dates.
