Beginning October 4, 2025, the Reserve Financial institution of India (RBI) will roll out a brand new system to clear cheques inside a couple of hours—a giant enchancment from the present processing time of as much as two working days.
Underneath the brand new system, cheques might be scanned, processed, and settled constantly throughout enterprise hours, as a substitute of being cleared in batches. Which means the present T+1 clearing cycle (the place T is the day of cheque deposit) might be diminished to just some hours.
At present, the Cheque Truncation System (CTS) clears cheques in a single or two working days, relying on when they’re deposited. The RBI goals to enhance buyer comfort and scale back settlement danger by shifting to a quicker, real-time clearing course of.
How the transition will work
Part 1: October 4, 2025 – January 2, 2026
*Banks should affirm (approve or reject) cheques introduced to them by 7:00 PM the identical day.
*If a financial institution doesn’t reply by 7:00 PM, the cheque might be mechanically handled as authorized and included for settlement. The deadline for processing all cheques might be 7:00 PM.
Part 2: From January 3, 2026
Cheques will should be confirmed inside 3 hours of being acquired by the financial institution.
Instance: If a cheque is acquired between 10:00 AM and 11:00 AM, the financial institution should affirm it by 2:00 PM (3 hours from 11:00 AM).
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If the financial institution doesn’t reply in time, the cheque will once more be thought-about authorized by default and cleared.
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