Run-through
Reserve Bank of India will introduce a quicker cheque cleaning system. This brand-new system intends to clear cheques within hours. The existing procedure uses up to 2 working days. The brand-new system will utilize constant cleaning. Stage 1 begins on October 4, 2025. Stage 2 starts on January 3, 2026. Banks need to notify clients about these modifications.
Mumbai: The RBI will present a brand-new system from October 4 for clearance of cheques within hours of existing to banks, minimizing the present period of as much as 2 working days.
Cheques will be scanned, provided, and passed in a couple of hours and on a constant basis throughout company hours. The cleaning cycle will be lowered from today T +1 days to a couple of hours.
Cheque Truncation System (CTS) presently processes cheques with a cleaning cycle of approximately 2 working days.
To enhance the effectiveness of cheque cleaning and minimize settlement threat for individuals, and to improve client experience, the RBI has actually chosen to shift CTS from the present method of batch processing to constant cleaning with ‘on-realisation-settlement’.
The Reserve Bank of India (RBI) has actually provided a circular for intro of Continuous Clearing and Settlement on Realisation in CTS.
“It has been decided to transition CTS to continuous clearing and settlement on realisation in two phases. Phase 1 shall be implemented on October 4, 2025 and Phase 2 on January 3, 2026,” it stated.
There will be a single discussion session from 10:00 AM to 4:00 PM.
Cheques gotten by the branches will be scanned and sent out to the cleaning home by the banks instantly and constantly throughout the discussion session, RBI stated.
“For every cheque presented, the drawee bank shall generate either positive confirmation (for honoured cheques) or negative confirmation (for dishonoured cheques),” it stated.
Throughout Phase 1 (from October 4, 2025 to January 2, 2026), drawee banks will be needed to verify (positively/negatively) cheques provided on them, newest by the end of the verification session (7:00 PM), else those will be considered to have actually been authorized and consisted of for settlement.
In Phase 2 (from January 3, 2026), the product expiration time of cheques will be altered to T +3 clear hours.
Providing an example, the RBI stated the cheques gotten by drawee banks in between 10:00 AM and 11:00 AM will need to be validated favorably or adversely by them by 2:00 PM (3 hours from 11:00 AM).
Cheques for which verification is not supplied by the drawee bank in the recommended 3 hours will be dealt with as considered authorized and consisted of for settlement at 2:00 PM.
RBI even more stated that on conclusion of settlement, the cleaning home will launch the details of favorable and unfavorable verifications to the providing bank.
“The presenting bank shall process the same and release the payment to the customers immediately, but not later than 1 hour from successful settlement, subject to usual safeguards,” it stated.
RBI directed banks to make their clients properly familiar with the modifications in the cheque cleaning procedure.
Banks have actually likewise been asked to be in preparedness to take part in constant cleaning in CTS on the recommended dates.
