Hyderabad: Private banks including HDFC Bank and ICICI Bank will begin same-day cheque clearance from October 4 under the Reserve Bank of India’s new settlement framework. The move aims to make payments faster and more secure.
From October 4, customers who deposit cheques will see clearance within hours instead of waiting two working days. Banks have urged account holders to maintain sufficient balances to avoid cheque bounces and to fill cheque details accurately.
Positive Pay made mandatory for high-value cheques
Banks asked customers to use the Positive Pay System for cheques above ₹50,000. Account holders must submit cheque number, account number, date, amount, and beneficiary name at least 24 hours before deposit.
Officials said banks will verify these details when the cheque is presented. They will clear the cheque only if the information matches; otherwise, the drawer must resubmit. Customers must send details to designated regional email addresses, after which banks will issue an acknowledgment.
RBI has already mandated Positive Pay for cheques above ₹5 lakh. Cheques validated through the system fall under RBI’s dispute resolution framework, giving customers added protection.
Currently, banks use the Cheque Truncation System (CTS), which processes cheques electronically but takes two days when deposited via ATMs or drop boxes. The new system eliminates that delay.
RBI also announced a two-phase rollout of continuous clearing and settlement, with Phase 1 starting October 4, 2025, and Phase 2 beginning January 3, 2026.
Banks advised customers to avoid overwriting, ensure the date is valid, match figures and words, and sign correctly to prevent rejection.
