RBI brand-new standards: Cheques will be cleared within hours, all the time discussion

RELEASED: 18 Aug 2025, 07:05 PM IST
LAST UPDATE: 18 Aug 2025, 07:05 PM IST

The Reserve Bank of India(RBI)has actually provided fresh standards to accelerate cheque settlements through the Cheque Truncation System(CTS). Under this system, there will be no physical motion of cheques; rather, banks will utilize scanned images and electronic information for processing, making it possible for quicker and more effective deals.

All-Day Presentation Window

From October 4, 2025, banks will be needed to scan cheques and forward their images, together with Magnetic Ink Character Recognition (MICR) information, to the cleaning home in between 10 am and 4 pm. The cleaning home will then send out these images to the particular drawee bank throughout the day. This marks a shift from the existing batch-based clearance system. Each cheque will likewise bring an “expiration time,” guaranteeing real-time approvals.

Two-Phase Implementation

Stage 1 (October 4, 2025– January 2, 2026): Banks need to supply cheque verification by 7 pm. If they stop working to react, the cheque will be considered authorized and instantly settled.

Stage 2 (From January 3, 2026): The action time is minimized to 3 hours. A cheque provided at 10 am need to be acted upon by 2 pm. Non-response within this window will lead to automated approval.

Faster Settlements for Customers

When the settlement is processed, the cleaning home will inform the providing bank, which need to credit the consumer’s account within one hour.

Advantages for Customers & & Businesses

Professionals highlight that this relocation will bring cheque clearance to simply a couple of hours, enhancing capital management for organizations and offering quicker access to funds for people. The system likewise removes dangers connected to physical cheque motion, minimizes mistakes, and decreases the opportunities of scams.

According to banking specialists, CTS will not just reduce clearing cycles however likewise improve security, providing clients quicker credits, more secure processing, and higher benefit– even as digital modes like UPI, NEFT, and RTGS continue to broaden.