RBI is preparing to introduce a new system related to cheques clearance. Customers will not have to wait for a long time. A notice has also been issued to the banks. This change will come into effect from October 4.
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RBI’s Big Decision: The Reserve Bank of India (RBI) has announced the implementation of a new rule for cheques clearance. It is going to introduce “Continuous Inclusion and Settlement on Receipt” in the cheques Truncation System (CTC). RBI has also issued a notification related to this. Currently, it takes 2 days to clear cheques clearing. But with the introduction of the new system, time clearing efficiency will improve. Risk settlement for participants will be reduced. Customer experience will also improve.
Under the On Realization Settlement System in RBI CTC, cheques will be scanned, presented and passed in a few hours. This work will be done on a continuous basis during the time. The cheques clearing cycle will be reduced from T+1 days to a few hours.
This advice was given to the banks
RBI will implement this system in two phases. The first phase will be implemented on October 4. The second phase will be implemented on January 3, 2026. RBI has advised all banks to make their customers aware of the changes in the cheques clearing process. Apart from this, they have also been asked to be ready to participate in continuous clearing in CTC on the above mentioned dates.
How will the new system of cheques clearance work?
Under the new rules, there will be a continuous single presentation session from 10:00 am to 4:00 pm. In a single presentation session, banks will scan the cheques received by the branches and send them to the clearing house immediately and continuously during the presentation session. The clearing house will issue images of the cheques to the drawee banks on a continuous basis.
The cheque confirmation session will start at 10:00 am and end at 7:00 pm. During this time, the drawee banks will generate negative or positive confirmation for each cheque presented.
Each cheque will have an item expiry time, which indicates the last date for the bank to provide confirmation for the presented form.
The edition will be continuous throughout the day and will be done on a real-time basis as soon as the bank receives confirmation. The cheque will be sent to the clearing house immediately after processing by the bank. The item expiry time for the first stage will be 7 pm.
In the first phase, banks will have to confirm their presented cheques by 7:00 PM in the confirmation session, else they will be considered accepted and included for settlement.
In the second phase i.e. from 3rd January 2026, the item expiry time will change to T+3 clear hours. Meaning and cheques received by the bank between 10:00 and 11:00 AM will have to be confirmed as positive or negative by 2:00 PM i.e. in 4 hours.
If the cheques are not confirmed in the stipulated hours then they will be considered accepted and included in the settlement at 2:00 PM.
On completion of settlement, the clearing house will issue positive and negative confirmation information to the bank. The bank will process these and release the payment to the customer immediately.
