New Delhi: Starting October 4, cheques deposited in banks will be cleared within a few hours on the same day, under the Reserve Bank of India’s (RBI) new settlement framework aimed at faster and more secure transactions.
Private lenders including HDFC Bank and ICICI Bank confirmed that they will implement the same-day clearance system from Friday. Customers have been urged to maintain sufficient balances to avoid cheque bounce and ensure that cheque details are filled correctly to prevent rejection.
To enhance security, banks are encouraging the use of the Positive Pay System, which requires account holders to pre-submit cheque details—such as account number, cheque number, date, amount, and beneficiary name—at least 24 working hours before depositing cheques above ₹50,000. For cheques above ₹5 lakh, Positive Pay is mandatory.
Once the cheque is presented, banks will cross-verify these details. If the information matches, the cheque will be processed; if not, the drawer will need to resubmit details. Acknowledgement messages will be sent upon receipt of information.
Currently, banks use the Cheque Truncation System (CTS), which sends electronic images of cheques to the drawee bank. While this has eliminated the need for physical transfer, deposits via drop boxes or ATMs usually take up to two working days for settlement.
The RBI has said the move will be rolled out in two phases Phase 1 from October 4, 2025, and Phase 2 from January 3, 2026 to ensure continuous clearing and settlement.
Customers have been advised to carefully check cheque details, including date, amount in words and figures, and signature, and avoid overwriting to ensure smooth processing. Cheques validated under Positive Pay will also be covered under the RBI’s dispute resolution system.
