RBI New Cheque Clearing System: Banks To Clear Cheques Within Hours Starting October 4, Know the Process
The RBI is set to implement a new cheque clearing system from October this year. Starting October 4, banks will clear cheques within just a few hours, instead of the current practice that can take up to two working days. Cheque images will be scanned and sent to the clearing house by the banks on a rolling basis between 10 AM and 4 PM during business hours.
Mumbai, August 14: The Reserve Bank of India (RBI) is set to implement a new cheque clearing system from October this year. Starting October 4, banks will clear cheques within just a few hours, instead of the current practice that can take up to two working days. This upgrade transitions the Cheque Truncation System (CTS) from batch processing to a new model of continuous clearing and settlement on realisation.
Cheque images will be scanned and sent to the clearing house by the banks on a rolling basis between 10 AM and 4 PM during business hours. This change is designed to boost efficiency, reduce settlement risks, and enhance customer experience by allowing account holders to access their funds much faster than before. RBI Proposes New Rules for Faster Settlement of Claims on Deceased Customers’ Accounts, Seeks Public Feedback by August 27.
New Cheque Clearing System To Be Implemented in 2 Phases
The new cheque clearing system will be implemented in two phases. In Phase 1, starting October 4, 2025 and running through January 2, 2026, drawee banks must confirm each cheque - either positively (payment honoured) or negatively (dishonoured) - by 7 PM the same day. Any cheque not confirmed by the cut-off time will be automatically treated as approved and included in the day's settlement. ICICI Bank Minimum Balance: Bank Rolls Back Minimum Average Balance Requirement to INR 15,000 for New Savings Accounts and Urban Customers After Backlash.
In Phase 2, effective January 3, 2026, the confirmation window tightens: banks must provide confirmation within three hours of receiving a cheque. For example, a cheque received at 11 AM must be confirmed by 2 PM. Failing that, it will be deemed approved and settled accordingly.
(The above story first appeared on LatestLY on Aug 14, 2025 10:51 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).