• By Shreyansh Mangla
  • Thu, 14 Aug 2025 04:32 PM (IST)
  • Source:JND

Banks Will Now Clear Your Cheques Within Hours: The Reserve Bank of India (RBI) is changing how banks process cheques with a new system which has been designed to significantly speed up the process. The RBI has announced a new "continuous clearing" system, which will begin on October 4, 2025, and will be fully implemented by January 3, 2026.

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With the new process, clearing of cheques will be a matter of hours, a major improvement over the current two-day system. Instead of sending cheques in large batches, banks will now scan and send them to the clearing house continuously throughout the day. This continuous processing will take place in batches between 10:00 AM and 4:00 PM.

Although the new cheque clearing mechanism will be introduced in Mumbai first, it will be applied to the national Cheque Truncation System (CTS), affecting cheque clearing across all of India.

The primary reasons for introducing these changes are:

1. To improve the efficiency of cheque clearing.
2. To reduce the risk of settlement issues for banks.
3. To provide a better experience for customers by giving them access to their funds sooner.

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Once a cheque is received, the bank will have only a few hours to verify it. If there is no confirmation within the specified time, the cheque will be considered approved and included in the settlement. After the cheque is settled, the corresponding bank must credit the money to the receiver's account within one hour. The RBI has instructed all banks to inform their customers about these changes.