RBI to Introduce Same-Day Continuous Cheque Clearing from October 4

News:

MAS Team | 15 August 2025

The Reserve Bank of India (RBI) has announced a major upgrade to the Cheque Truncation System (CTS) aimed at sharply reducing cheque clearance times—from up to two working days to just a few hours—by adopting continuous clearing and settlement on realisation.

Key Changes

Continuous clearing during business hours: From October 4, 2025, cheques will be scanned, presented, and processed on an ongoing basis between 10:00 AM and 4:00 PM, replacing the current batch-based T+1 cycle.
Two-phase rollout:
o Phase 1 (Oct 4, 2025 – Jan 2, 2026): Drawee banks must confirm each cheque—positively for honoured or negatively for dishonoured—by the end of the daily confirmation session at 7:00 PM. Failure to confirm will be treated as deemed approval.
o Phase 2 (from Jan 3, 2026): Introduction of a T+3 clear hours rule, requiring confirmation within three hours of receipt. For example, cheques received between 10:00 AM and 11:00 AM must be confirmed by 2:00 PM. Unconfirmed items will be deemed approved.
Settlement and payment release: After settlement, the clearing house will share confirmation results with the presenting bank, which must credit customer accounts immediately, and no later than one hour after settlement, subject to safeguards.

According to RBI, the move is designed to: enhance efficiency in cheque processing, reduce settlement risk for market participants and improve customer experience by enabling same-day availability of funds.

Banks have been instructed to:upgrade systems and processes to support continuous clearing, inform customers about the upcoming changes and ensure readiness for participation on the scheduled dates.

Dear Investor,
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.