RBI Says, Cheques to Be Cleared Within Hours from October 4

From October 4, 2025, cheque payments in India will become much faster. The Reserve Bank of India (RBI) has announced a new system that will clear cheques within a few hours rather than the current two working days.

The change will be made through an upgrade to the Cheque Truncation System (CTS), which handles electronic processing of cheque images. Currently, cheques are processed in batches, meaning they are cleared only at fixed times. Under the new system, known as Continuous Clearing and Settlement on Realisation, cheques will be processed as soon as they are received.

Here is How It Will Work:

Between 10:00 AM and 4:00 PM, banks will scan and send cheques to the clearing house without waiting for a batch. The clearing house will then send them instantly to the bank responsible for paying. That bank must confirm whether the cheque is approved or rejected.

This Process will happen in two stages:

• Phase 1 (October 4, 2025): Banks must confirm cheques by 7:00 PM the same day. If they do not respond, the cheque will be treated as approved.
• Phase 2 (January 3, 2026): The time for confirmation will be reduced to three hours. For example, a cheque received at 10 AM must be confirmed by 1 PM.

Settlements will occur hourly and once completed, customers should receive the credited amount within an hour, provided all checks are passed.

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RBI Objective:

The RBI says, “The aim is to make cheque transactions faster, safer and more convenient, while reducing risks and delays. Banks have been instructed to prepare for this change and inform their customers in advance".

With these steps, the days of waiting for cheques to "clear" will soon be in history.