From October 4, 2025, the RBI will replace the current mini-batch-based processing under the Cheque Truncation System (CTS) with continuous clearing, drastically reducing clearance times from up to two working days to just hours.
Implementation in Two Phases
- Phase 1 (Oct 4, 2025 – Jan 2, 2026)
- A single presentation session will run from 10 AM to 4 PM.
- Cheques will be scanned immediately and sent to the clearing house in real time.
- Drawee banks must confirm (honour or dishonour) by 7 PM.
- If no confirmation is received, the cheque is deemed approved for settlement.
- Once confirmed, the presenting bank will credit the beneficiary within 1 hour
- Phase 2 (From Jan 3, 2026)
- Clearer timelines introduced with a T+3 clear hours rule.
- For example, cheques presented between 10–11 AM must be confirmed by 2 PM.
- Unconfirmed cheques after three hours are automatically approved.
- Beginning 11 AM, the system will perform hourly settlements throughout the confirmation window.
Why This Matters
| Feature | Benefit |
|---|---|
| Quick liquidity | Ensures faster fund availability—crucial for businesses and individuals |
| Reduced risk | Limits the exposure to failed or delayed cheque settlement |
| Improved predictability | Customers and businesses gain clarity on when funds arrive |
| Bank accountability | Drawee banks must respond promptly—or face auto-approval of cheques |
| Efficiency boost | Streamlined, real-time process replaces manual batch clearing |
