Synopsis: Starting October 4, 2025, the RBI will implement continuous clearing in the Cheque Truncation System (CTS), drastically reducing cheque clearance times to just hours. The change will be executed in two phases, with even faster timelines coming in January 2026.
In a significant step towards faster banking services, the Reserve Bank of India (RBI) has announced that from October 4, 2025, cheques will be cleared within hours under a Continuous Clearing and Settlement on Realisation system in the Cheque Truncation System (CTS).
The RBI circular states that the transition from batch processing to continuous clearing will be implemented in two phases:
Phase 1 (Oct 4, 2025 – Jan 2, 2026): Cheques will be processed continuously from 10:00 AM to 4:00 PM, with confirmations required by 7:00 PM. Unconfirmed cheques by that time will be considered approved for settlement.
Phase 2 (From Jan 3, 2026): Banks will have just T+3 clear hours to confirm cheque payments. For example, cheques received between 10:00 AM and 11:00 AM must be confirmed by 2:00 PM the same day.
Cheques will include an Item Expiry Time — the deadline by which the drawee bank must confirm or reject the instrument. The RBI expects banks to process transactions in real-time as soon as images are received, sending positive or negative confirmations immediately.
This upgrade aims to make cheque payments almost as fast as electronic transfers, improving efficiency and customer satisfaction across the banking sector.
Disclaimer: This article is for informational purposes only and does not constitute banking or financial advice. Customers should check with their respective banks for specific timelines and procedures related to cheque clearance.
