In a significant step in the direction of sooner clearance of cheques, the Reserve Financial institution of India (RBI) has introduced same-day and hourly cheque clearances in phases.
In line with the RBI’s directive, issued on Wednesday to banks collaborating within the Cheque Truncation System (CTS) and the Nationwide Funds Company of India (NPCI), the brand new system will be certain that cheque processing, affirmation, and settlement happen in close to real-time, considerably decreasing delays for patrons.
“It has been determined to transition CTS to steady clearing and settlement on realisation in two phases. Section 1 shall be carried out on October 4, 2025 and Section 2 on January 3, 2026,” famous RBI’s directives.
In Section 1, ranging from October 4, there might be a single cheque presentation session between 10 am to 4 pm throughout which banks will scan and ship cheques to the clearing home constantly. The clearing home will launch cheque pictures to drawee banks on a rolling foundation.
Drawee banks might be required to course of these cheques in actual time and beneficiary to get credit score by 7 pm the identical day. Any cheque with out affirmation by 7 pm might be deemed accepted and included for settlement.
In Section 2, from January 3, 2026, the system will shift to a stricter timeline with “T+3 clear hours” because the merchandise expiry time. A cheque obtained will have to be confirmed or denied inside three hours of it being deposited in a financial institution. Cheques with out affirmation within the stipulated time might be handled as accepted for settlement.
Underneath the revised framework, settlements won’t be based mostly on cheque presentation however on realisation. Ranging from 11:00 AM every day, hourly settlements might be completed based mostly on constructive confirmations and deemed approvals till the top of the affirmation session. No entries might be made for cheques returned with detrimental affirmation.
After every settlement cycle, the clearing home will inform the presenting financial institution concerning the standing of cheques. Presenting banks will then credit score prospects’ accounts instantly, however no later than one hour after settlement, topic to plain safeguards.
The RBI has directed all banks to make sure prospects are nicely knowledgeable concerning the upcoming modifications within the cheque clearing course of. Banks have additionally been suggested to be absolutely ready to take part in steady clearing from the respective part begin dates.
With this transfer, the RBI goals to make cheque clearance sooner, extra clear, and customer-friendly, marking a major leap from the traditional batch-based cheque clearing system to real-time settlement effectivity. (ANI)
