The Reserve Bank of India (RBI) is set to drastically shorten cheque clearance times under a new efficiency-driven reform called Continuous Clearing and Settlement on Realisation. Starting October 4, 2025, cheques will clear within hours—down from the current timeline of up to two working days—through a phased rollout. By January 3, 2026, cheque confirmations must be completed within 3 hours, with funds credited shortly thereafter.
Key Highlights from the New Cheque Clearing Framework
Phase 1 – Effective October 4, 2025
A single presentation window will run from 10:00 AM to 4:00 PM.
Cheques will be scanned and uploaded continuously to the clearing system.
Drawee banks must confirm (positive or negative) whether the cheque is honoured by 7:00 PM.
If there’s no response by 7:00 PM, the cheque is automatically considered approved for settlement.
Phase 2 – Effective January 3, 2026
The confirmation timeline shortens to T+3 clear hours.
Example: A cheque deposited at 10:00 AM must be confirmed by the drawee bank by 2:00 PM. If not, it’s deemed approved.
After confirmation, funds must be credited to the recipient’s account within 1 hour.
Why This Matters
| Benefit | Explanation |
|---|---|
| Speedy Access to Funds | Make cheques almost as fast as electronic payments for better liquidity. |
| Reduced Risk | Decreases settlement risk and enhances banking system resiliency. |
| Customer Convenience | Eliminates delays and uncertainty with near real-time processing. |
| Operational Efficiency | Streamlines workflows for both banks and customers under CTS. |
What Banks and Customers Must Know
Banks need to upgrade systems, train staff, and ensure readiness for the new process.
Customers should be informed in advance—cheques will now clear far faster, potentially on the same day.
