The Reserve Bank of India (RBI) is set to revolutionize the cheque clearing process starting October 4, 2025. Previously, cheque payments typically took two days to process, but the new system will enable banks to credit payments within hours of cheque submission.
Under the new framework, bank branches will immediately scan and send cheques to the clearing house, which will require positive or negative confirmation for each cheque. The Cheque Truncation System (CTS) will transition from a batch processing model to a real-time, continuous clearing system.From October 4, 2025, to January 2, 2026, drawee banks must provide confirmation by the end of the day. Starting January 3, 2026, cheques must be confirmed within T+3 hours.
Once processed, the clearing house will share details with the banks, which must adhere to security protocols within one hour.This new system ensures faster, safer, and seamless payments. Customers will experience quicker and smoother transactions, while banks will enhance efficiency in financial operations. The continuous cheque clearing system will significantly improve the speed, efficiency, and customer experience of cheque payments.