Latest news with #ChequeTruncationSystem
Hans India
16 hours ago
- Business
- Hans India
Banks to clear cheques within few hours starting October 4: RBI
Mumbai: The Reserve Bank of India (RBI) has announced that bank cheques must be cleared within a few hours from October 4 -- down from the current clearance time of up to two working days. Under the new mechanism, the banks will scan, present and pass cheques within a few hours and on a continuous basis during the business hours, cutting the clearing cycle down from the present T+1 days, a circular from central bank said. The current Cheque Truncation System (CTS) processes cheques within a clearing cycle of up to two working days. The RBI decided to transition CTS from batch processing to continuous clearing with 'on-realisation-settlement' to improve the efficiency of cheque clearing, reduce settlement risk for participants, and enhance customer experience. CTS will transition to continuous clearing and settlement on realisation in two phases. Phase 1 will be implemented on October 4, 2025, and Phase 2 on January 3, 2026. A single presentation session is scheduled from 10 am to 4 pm. "Cheques received by the branches shall be scanned and sent to the clearing house by the banks immediately and continuously during the presentation session," the circular said. "The clearing house will, in turn, release the cheque images to drawee banks on a continuous basis. The confirmation session shall start at 10 am and close at 7 pm. For every cheque presented, the drawee bank shall generate either positive confirmation (for honoured cheques) or negative confirmation (for dishonoured cheques)," it further said. In Phase 1, from October 4, 2025, to January 2, 2026, drawee banks must confirm cheques presented to them by 7 pm. If not confirmed, the cheques will be considered approved for settlement. Starting January 3, 2026, the expiry time for cheques will be updated to T+3 clear hours in Phase 2. The RBI stated that cheques received by drawee banks between 10 am and 11 am must be confirmed, either positively or negatively, by 2 pm. Cheques without confirmation from the drawee bank by 2 pm will be considered approved and included for settlement at 2 pm. "The presenting bank will process the payment and release it to customers immediately, but no later than 1 hour after successful settlement, subject to usual safeguards," the circular said. The RBI has instructed banks to inform customers about changes in the cheque clearing process.
India Today
16 hours ago
- Business
- India Today
RBI's new rule: Cheques to clear in just hours starting this date
For a long time, cheque clearance in India has been a time-consuming process, often taking up to two working days. This delay has caused inconvenience for individuals and businesses who rely on cheque October 4, 2025, that hassle will largely be removed as the Reserve Bank of India (RBI) is set to introduce a faster clearance system that will process cheques within the new rule, cheques will be scanned, presented, and cleared continuously during business hours, reducing the clearing cycle from the current T+1 days to just a few hours. This change will take place under the Cheque Truncation System (CTS), which until now has worked on batch to the RBI circular, the new system, called Continuous Clearing and Settlement on Realisation, will be rolled out in two 1 will begin on October 4, 2025, and Phase 2 will follow on January 3, 2026. The move aims to improve efficiency, reduce settlement risks, and enhance customer the new set-up, there will be a single presentation session from 10:00 AM to 4:00 PM. Cheques deposited at bank branches during this period will be scanned and sent to the clearing house immediately. The drawee bank (the bank on which the cheque is drawn) will then send a positive confirmation for honoured cheques or a negative confirmation for dishonoured Phase 1, drawee banks must confirm cheques by the end of the confirmation session at 7:00 PM. If they fail to respond, the cheques will be considered approved and included for 2 will bring in a stricter timeline. From January 3, 2026, cheques must be confirmed within three hours of presentation. For example, if a cheque is received between 10:00 AM and 11:00 AM, it must be confirmed by 2:00 PM. If no confirmation is given within the time limit, the cheque will be deemed the settlement is complete, the clearing house will send the confirmation details to the presenting bank, which must release the funds to the customer immediately, but no later than one hour after RBI has instructed banks to inform customers about the new process and to ensure they are ready to handle continuous cheque clearing from the implementation dates. advertisement(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends
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Business Standard
18 hours ago
- Business
- Business Standard
No more 2-day wait: Cheques to clear within hours from October 4, says RBI
In a major win for account holders and businesses alike, the Reserve Bank of India (RBI) has announced a sweeping reform to the Cheque Truncation System (CTS). Starting October 4, 2025, cheques will be cleared within hours instead of up to two working days, transforming cheque processing into a real-time experience during business hours. 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.
NDTV
a day ago
- Business
- NDTV
Banks To Clear Cheques Within Few Hours From October 4: RBI
Mumbai: The RBI will introduce a new mechanism from October 4 for clearance of cheques within hours of being presented to banks, reducing the current time period of up to two working days. Cheques will be scanned, presented, and passed in a few hours and on a continuous basis during business hours. The clearing cycle will be reduced from the present T+1 days to a few hours. Cheque Truncation System (CTS) currently processes cheques with a clearing cycle of up to two working days. To improve the efficiency of cheque clearing and reduce settlement risk for participants, and to enhance customer experience, the RBI has decided to transition CTS from the current approach of batch processing to continuous clearing with 'on-realisation-settlement'. 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. There will be a single presentation session from 10:00 AM to 4:00 PM. 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. During Phase 1 (from October 4, 2025 to January 2, 2026), drawee banks will be required to confirm (positively/negatively) cheques presented on them, latest by the end of the confirmation session (7:00 PM), else those will be deemed to have been approved and included for settlement. In Phase 2 (from January 3, 2026), the item expiry time of cheques shall be changed to T+3 clear hours. 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. RBI further said that on completion of settlement, the clearing house will release the information of positive and negative confirmations to the presenting bank. "The presenting bank shall process the same and release the payment to the customers immediately, but not later than 1 hour from successful settlement, subject to usual safeguards," it said. RBI directed banks to make their customers adequately aware of the changes in the cheque clearing process. Banks have also been asked to be in readiness to participate in continuous clearing in CTS on the prescribed dates.
Indian Express
a day ago
- Business
- Indian Express
RBI asks banks to clear cheques within hours starting October 4
Starting October 4, 2025, the Reserve Bank of India (RBI) will roll out a new system to clear cheques within a few hours—a big improvement from the current processing time of up to two working days. Under the new system, cheques will be scanned, processed, and settled continuously during business hours, instead of being cleared in batches. This means that the current T+1 clearing cycle (where T is the day of cheque deposit) will be reduced to just a few hours. Currently, the Cheque Truncation System (CTS) clears cheques in one or two working days, depending on when they are deposited. The RBI aims to improve customer convenience and reduce settlement risk by moving to a faster, real-time clearing process. How the transition will work Phase 1: October 4, 2025 – January 2, 2026 *Banks must confirm (approve or reject) cheques presented to them by 7:00 PM the same day. *If a bank does not respond by 7:00 PM, the cheque will be automatically treated as approved and included for settlement. The deadline for processing all cheques will be 7:00 PM. Phase 2: From January 3, 2026 Cheques will need to be confirmed within 3 hours of being received by the bank. Example: If a cheque is received between 10:00 AM and 11:00 AM, the bank must confirm it by 2:00 PM (3 hours from 11:00 AM). If the bank does not respond in time, the cheque will again be considered approved by default and cleared.
