WHAT?
The Reserve Bank of India (RBI) has announced a new mechanism to expedite cheque clearing, effective October 4, 2025, reducing the clearance time from the current T+1 days (up to two working days) to a few hours.
The Cheque Truncation System (CTS) will transition from batch processing to continuous clearing with on-realisation-settlement, improving efficiency, reducing settlement risks, and enhancing customer experience.
Implementation Phases
- Phase 1 (October 4, 2025 – January 2, 2026): Cheques will be scanned and presented continuously during a single session (10:00 AM to 4:00 PM). Drawee banks must confirm (positively for honored cheques or negatively for dishonored ones) by 7:00 PM, or cheques are deemed approved and settled.
- Phase 2 (January 3, 2026 onwards): Cheques must be confirmed within T+3 hours. For example, cheques received between 10:00 AM and 11:00 AM must be confirmed by 2:00 PM, or they are deemed approved and settled.
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