RBI Accelerates Cheque Clearance with Same-Day Settlements

The Reserve Bank of India announces same-day and hourly cheque clearances, transitioning the Cheque Truncation System to near real-time processing starting in 2025. The new system reduces delays, ensuring faster settlement and improved customer experience.

In a landmark move aimed at expediting cheque clearance, the Reserve Bank of India (RBI) has declared its plan to introduce same-day and hourly cheque clearances. The announcement was made in a directive to banks involved in the Cheque Truncation System (CTS) and the National Payments Corporation of India (NPCI), underscoring a shift towards near real-time processing and settlement.

According to the RBI's directive, the transition to continuous clearing and settlement is to unfold in two stages. Phase 1 is set to begin on October 4, 2025, with a single presentation session from 10 am to 4 pm, allowing banks to continuously scan and forward cheques to the clearing house. Subsequently, the clearing house will dispatch cheque images to drawee banks promptly.

Phase 2, commencing on January 3, 2026, will enforce a more rigorous schedule with a 'T+3 clear hours' deadline for confirmation or denial upon cheque deposit. Unconfirmed cheques within this window will automatically proceed to settlement, fostering a more efficient and customer-friendly system.

This overhaul signifies a departure from cheque presentation-dependent settlements, emphasizing realization-based processing instead. Hourly settlements yielding positive confirmations or deemed approvals will proceed throughout the day, starting at 11:00 AM, excluding negatively confirmed returns from entry. Post-settlement updates will be promptly relayed to presenting banks for swift account credits, all within an hour post-settlement and under standard safeguards.

The RBI mandates banks to duly inform customers about these procedural changes and encourages readiness for seamless participation. The initiative marks a pivotal advancement towards a transparent and expedited cheque clearing framework, moving away from the traditional batch-based systems to a cutting-edge real-time model. (ANI)

(With inputs from agencies.)