Mumbai: The Reserve Bank of India (RBI) has implemented its new cheque clearance mechanism from Saturday enabling faster processing of cheque payments across all banks. The system, called Continuous Clearing and Settlement, replaces the earlier two-day cycle with near-instant processing.
Under the new system, banks will scan cheques, present them digitally, and process payments within a few hours during working hours. Several banks, including HDFC and ICICI, began trial runs a day in advance to ensure smooth functioning.
Banks advise customers to maintain sufficient balance
Leading private banks have advised customers to keep adequate funds in their accounts to avoid cheque bounces. They have also reminded users to fill cheque details carefully, as errors could lead to rejection or delay in clearing.
For enhanced security, banks have encouraged the use of the Positive Pay System for cheques above ₹50,000. Customers must share details such as account number, cheque number, date, amount, and payee name with the bank at least 24 hours before submission. When the cheque is presented, the bank will verify these details before clearing it.
If the information matches, the cheque will be cleared instantly; otherwise, it will be rejected, requiring resubmission of details. The RBI’s new framework aims to make cheque transactions faster, safer, and more transparent for customers.
