Cheques Cleared in Hours, Not Days: RBI’s New Rule from October 4 to Transform Banking
The Voice of Chandigarh :
The Reserve Bank of India (RBI) has announced a game-changing reform in cheque clearance, promising to slash processing time from two days to just a few hours. Starting October 4, 2025, a continuous scanning and settlement system will replace the current batch-based Cheque Truncation System (CTS), bringing speed, efficiency, and transparency to banking transactions.
How It Works
- Phase 1 (Oct 4, 2025 – Jan 2, 2026): Cheques scanned between 10 AM–4 PM; banks must confirm by 7 PM or the cheque will be auto-approved.
- Phase 2 (From Jan 3, 2026): Banks must confirm within 3 hours of receiving a cheque, with funds released within 1 hour post-settlement.
Why It Matters
This reform will:
- End long cheque clearance waits.
- Reduce fraud and reconciliation delays.
- Ensure payees get funds faster through auto-approval if banks fail to respond on time.
Timeline Overview
| Phase | Dates | Key Change |
|---|---|---|
| 1 | Oct 4, 2025 – Jan 2, 2026 | 10 AM–4 PM scanning, 7 PM confirmation deadline |
| 2 | From Jan 3, 2026 | 3-hour confirmation, 1-hour fund release |
With this shift, RBI is rewriting the rules of cheque banking — making ‘same-day clearance’ the new normal.
