Same-Day cheque Clearing: Cheque will be cleared within 3 hours from this day, a major relief for customers with RBI's new system.
Same-Day cheque Clearing: The Reserve Bank is implementing cheque clearance in two phases. The first phase, which began on October 4th, will allow cheques to be cleared within a single day.
Same-Day cheque Clearing: This is great news for bank customers. According to the Reserve Bank of India's (RBI) new guidelines, starting January 3rd, 2026, cheques deposited at the counter will be cleared within just 3 hours.
In fact, the Reserve Bank is implementing cheque clearance in two phases. The first phase, which began on October 4th, will allow cheques deposited in the morning to be cleared within a single day. This means that cheques deposited in the morning will be cleared by the evening. This move by the RBI aims to improve customer convenience by reducing the clearing time.
Now the rules are even stricter.
Starting January 3, 2026, after a cheque is deposited, it will be sent to the drawee bank, i.e., the bank to which your cheque belongs or from whose account the money is to be deducted. The bank must respond within a specified timeframe. For example, if a person deposits a cheque between 11 a.m. and 12 p.m., the bank must notify them by 3 p.m. at the latest whether the cheque has passed or failed. For example, if the cheque has an incorrect date, signature, or account number, it will be rejected. If no response is received from the bank within the specified timeframe, the cheque will be automatically considered passed and settled.
What is the difference between the two phases?
Currently, under the first phase, starting October 4, cheques are being continuously sent to the clearinghouse from 10 a.m. to 4 p.m. Banks must confirm cheque passage or return by 7 p.m. In the second phase, the rules will become even stricter, requiring the bank to confirm the cheque three hours after it is deposited. For example, if a customer deposits a cheque between 11:00 AM and 12:00 PM, the bank must notify the customer by 3:00 PM whether the cheque has been cleared or not. If the bank fails to provide timely information, the cheque will be automatically considered passed and settled.
How is a cheque cleared?
Typically, a cheque is deposited into the bank between 10:00 AM and 4:00 PM.
After scanning the cheque , the bank digitally forwards it to the clearinghouse.
Now, the drawee bank or payee bank must confirm whether the cheque received from the clearinghouse is passed or failed.
If the bank fails to respond within the stipulated time, the cheque is considered valid and the settlement process begins.
The funds are credited to the account within one hour of settlement.
