The Reserve Bank of India (RBI) will launch a new real-time cheque clearing system starting October 4, 2025, significantly reducing the current processing time from up to two working days to just a few hours.
Under the new system, cheques will be scanned, processed, and settled continuously during business hours, replacing the existing batch-based clearing cycle. The transition aims to enhance customer convenience and reduce settlement risks.
Phase 1 (October 4, 2025 – January 2, 2026):
- Banks must confirm or reject cheques by 7:00 PM on the same day.
- Cheques not responded to by the deadline will be automatically approved for settlement.
Phase 2 (From January 3, 2026):
- Banks will need to confirm cheques within 3 hours of receipt.
- Example: A cheque received between 10:00 AM and 11:00 AM must be confirmed by 2:00 PM.
- Non-responded cheques will again be treated as approved by default.
This move marks a major step towards faster, more efficient banking in India, aligning with global best practices for real-time payment settlement.
