Mumbai: Starting October 4, 2025, bank customers will no longer have to wait up to two working days for cheque clearance. The Reserve Bank of India (RBI) is introducing a faster, continuous clearing system under which cheques will be scanned, presented, and settled within hours during business hours.
Currently, the Cheque Truncation System (CTS) follows a T+1 batch-processing cycle, meaning it can take up to two days for funds to be credited. The RBI’s new system—Continuous Clearing and Settlement on Realisation—will replace batch processing with real-time settlement, aiming to improve efficiency, reduce settlement risks, and enhance customer experience.
The rollout will happen in two phases:
Phase 1: From October 4, 2025 to January 2, 2026, cheques will be presented between 10:00 AM and 4:00 PM, with drawee banks required to confirm payment status (positive for honoured cheques, negative for dishonoured) by 7:00 PM. If no response is given, the cheque will be deemed approved for settlement.
Phase 2: From January 3, 2026, banks must confirm or reject cheques within three clear hours of presentation. For example, a cheque presented at 11:00 AM must be confirmed by 2:00 PM, failing which it will be considered approved.
Once settlement is completed, the clearing house will share the results with the presenting bank, which must release funds to the customer within one hour of successful settlement—subject to standard safeguards.
The RBI has directed all banks to prepare for this transition and educate customers about the faster clearing process.
This move is expected to significantly speed up cheque-based transactions, benefiting both individuals and businesses by cutting wait times from days to mere hours.
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