The Reserve Bank of India (RBI) is set to roll out a new cheque clearing system starting October 4, 2025, that will reduce the processing time from two working days to just a few hours. This marks a major shift towards faster, more reliable, and customer-friendly banking services.
Current System vs New System
- Current system: Cheques are processed under the Cheque Truncation System (CTS) in batches, taking T+1 or T+2 days (T = day of deposit).
- New system: Cheques will be scanned, processed, and settled continuously during business hours, reducing delays and improving customer convenience.
Transition Plan
Phase 1: October 4, 2025 – January 2, 2026
- Banks must confirm (approve or reject) cheques by 7:00 PM the same day.
- If no response, the cheque will be automatically approved and settled.
Phase 2: From January 3, 2026
- Banks will have three hours to confirm a cheque.
- Example: If a cheque is received between 10:00–11:00 AM, the bank must respond by 2:00 PM.
- If the bank does not respond in time, the cheque will again be considered approved by default and cleared.
Why This Matters
- Faster customer service – Funds available within hours, not days.
- Reduced settlement risk – Continuous processing lowers chances of fraud or errors.
- Boost to trust – Customers and businesses benefit from quicker liquidity.