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No more 2-day wait: Cheques to clear within hours from October 4, says RBI
What's Changing?
Phase 1 Oct 4, 2025 – Jan 2, 2026: Continuous scanning (10 AM–4 PM); drawee banks must confirm cheques by 7 PM, else auto-approved for settlement that night.
Phase 2 From Jan 3, 2026: Cheques to be confirmed within 3 hours of receipt. Funds credited within 1 hour post-settlement.
Giving an example, the RBI said the cheques received by drawee banks between 10:00 AM and 11:00 AM will have to be confirmed positively or negatively by them by 2:00 PM (3 hours from 11:00 AM).
Cheques for which confirmation is not provided by the drawee bank in the prescribed 3 hours shall be treated as deemed approved and included for settlement at 2:00 PM.
The Reserve Bank of India (RBI) has issued a circular for introduction of Continuous Clearing and Settlement on Realisation in CTS.
"It has been decided to transition CTS to continuous clearing and settlement on realisation in two phases. Phase 1 shall be implemented on October 4, 2025 and Phase 2 on January 3, 2026," it said.
Why It Matters to You
Faster Liquidity: Money from cheque deposits—not just electronically cleared payments—will now hit your account much quicker.
Better Predictability: Same-day confirmation or dishonour reduces uncertainty in cash flows and personal banking.
Bank Accountability: If drawee banks don't respond within the deadline, the cheque is treated as approved—no more funds blocked by delay.
Lower Settlement Risk: Faster processing reduces the risk exposure for both customers and banks.
Cheques received by the branches shall be scanned and sent to the clearing house by the banks immediately and continuously during the presentation session, RBI said.
"For every cheque presented, the drawee bank shall generate either positive confirmation (for honoured cheques) or negative confirmation (for dishonoured cheques)," it said.
What You Need to Keep in Mind
Be alert to changes in your bank's handling of cheque deposits post-October.
If you deposit a cheque before 4 PM, expect a confirmation or settlement that same evening—provided the drawee bank complies.
Delays beyond 7 PM will result in automatic approval, helping avoid payment holdups.
From January, expect clearances within three hours, and banks must credit funds within another hour.
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