Hyderabad: The Reserve Bank of India (RBI) has announced that from October 4, 2025, bank cheques will be cleared within a few hours instead of the current clearance time of up to two working days. The move aims to speed up transactions, reduce settlement risks, and improve customer experience by shifting the Cheque Truncation System (CTS) from batch processing to continuous clearing with settlement on realisation.
According to the RBI circular, banks will scan, present, and process cheques continuously between 10 a.m. and 4 p.m., with drawee banks required to confirm payment status either positive for honoured cheques or negative for dishonoured ones by 7 pm in Phase 1, which runs from October 4, 2025, to January 2, 2026. If no confirmation is provided, cheques will be treated as approved for settlement.
RBI to roll out faster cheque clearance in two phases
In Phase 2, beginning January 3, 2026, cheques received between 10 a.m. and 11 a.m. must be confirmed by 2 p.m., with unconfirmed cheques automatically cleared for settlement at that time. The presenting bank must release payments to customers immediately after settlement, and no later than one hour afterward, subject to safeguards.
The RBI has asked banks to inform customers about the changes, making sure the move to the faster clearance system goes smoothly.
