Now you don't have to wait for 2 days for your check to be cleared, RBI has changed the rules..

The Reserve Bank of India (RBI) has announced a major change in the country's banking system. Now you will not have to wait for two days for the check to be cleared, but the check will be processed in a few hours, and the amount will be transferred to the accounts. The objective of this new system is to increase the speed of check clearing, reduce risk, and give a better experience to the customers.

At present, it takes about T+1 or two working days to process a check under the Check Truncation System (CTS). But RBI is now moving this system from batch processing to settlement on realization.

When will this new system be implemented?

The system of continuous and real-time settlement for check clearing will be effective from October 4, 2025. Under this new system, the checks received by the banks from the customers will be scanned and immediately sent to the clearing house. This process will be conducted in a single clearing session from 10 am to 4 pm.

The new system will be implemented in two phases.
This new system will be implemented in two phases. The first phase will be fully effective from 4 October 2025 to 2 January 2026, and the second phase from 3 January 2026. In the first phase, after presenting the cheque, the drawer bank will have to confirm by 7 pm on the same day whether the cheque has been accepted or rejected. If the bank does not respond on time, the cheque will be considered accepted, and settlement will be done on that basis.

A 3-hour limit will be available in the second phase

In the second phase, which will come into effect from January 2026, the drawer banks will have to confirm each cheque within just 3 hours. For example, if a cheque is presented at 10:30 am, the concerned bank will have to clarify its status by 1:30 pm. If confirmation is not received within the time limit, the cheque will be automatically accepted.

Customers will get payment immediately.

Under this new system, as soon as the clearing house sends the confirmation and settlement information of the cheque, the presenting bank will have to transfer the amount to the customer's account. RBI has clarified that it will be mandatory to make this payment within one hour of clearance, provided there is no security risk.

Strict instructions were given to banks
RBI has directed all banks to give clear and timely information about this change to their customers. Apart from this, banks have to ensure that they are fully prepared for the new CTS process before the stipulated dates.

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