Reserve Bank Delays Second Phase of Faster Cheque Clearance

The Reserve Bank has postponed the second phase of the faster cheque clearance mechanism to allow banks more time to streamline operations. Originally set for implementation on January 3, banks are now expected to clear cheques within three hours of realization. The timeframe for various sessions has also been adjusted.

The Reserve Bank has decided to delay the second phase of implementing a faster cheque clearance mechanism, providing banks with additional time to streamline their operations. This phase, which was scheduled to go into effect on January 3, requires banks to clear cheques within three hours of realization.

Following teething issues during the first phase that began on October 4, the Reserve Bank has postponed further actions until a later date. A statement from the bank highlighted necessary timing adjustments: the presentation session will now run from 9 am to 3 pm, and the confirmation session will operate from 9 am to 7 pm.

Previously announced in August, the new cheque truncation system aims to replace the traditional clearing cycle, reducing it from two working days to just a few hours. Phase 2 introduces the change of cheque expiry time to T+3 clear hours, significantly speeding up the overall clearing process.

(With inputs from agencies.)