RBI Modernizes Cheque Clearing Process, Slashing Processing Time from Days to Hours
MAS Team | 09 August 2024
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The Reserve Bank of India (RBI) has announced a significant improvement to the cheque clearing system, dramatically reducing the processing time from days to mere hours. This development was unveiled by RBI Governor Shaktikanta Das during the recent monetary policy statement.
Under the current Cheque Truncation System (CTS), cheque clearing typically takes up to two business days. However, the RBI is set to introduce a new "continuous clearing" system with "on-realization-settlement." This innovation will allow cheques to be cleared within hours on the same day they are presented, benefiting both payers and payees with faster transactions.
The existing CTS, implemented in 2021, already digitized the cheque clearing process by replacing physical cheque processing with electronic imaging. This system transmits digital images of cheques to paying branches through clearing houses, along with essential information like MICR codes and presenting bank details.
With the new continuous clearing system, cheques will be scanned, presented, and processed continuously during business hours. This change will effectively reduce the clearing cycle from the current T+1 days (where T is the day of deposit) to just a few hours.
This announcement came as part of the broader Monetary Policy Committee (MPC) meeting outcomes. The MPC voted 4-2 to maintain the benchmark repo rate at 6.5%, marking the ninth consecutive policy meeting without a change. Additionally, the RBI retained its real GDP growth estimates for FY24-25 at 7.2% and kept CPI inflation projections at 4.5%.
This modernization of the cheque clearing process represents a significant step forward in India's financial infrastructure, aligning with the country's broader push towards digital and efficient banking services.
Dear Investor,
In case of any grievance / complaint :
In case of any grievance / complaint :
- Please contact Compliance Officer Shraddha Mhatre at [email protected] and Phone No. - 91-22-35131664.
- You may also approach CEO Debashis Basu at email- id [email protected] and Phone No. - 91-22-35131664.
