RBI Introduces New Mechanism From Oct 4 Allowing Cheque Clearance Every Hour 10 AM to 4 PM

New Delhi, Oct 3 (KNN) The Reserve Bank of India (RBI) will implement a faster cheque clearing system from October 4, 2025, shifting from the current batch-based process to continuous clearing and settlement on realisation. 

The new mechanism is expected to credit funds within hours, compared with the existing one-to-two business day cycle.

A nationwide trial is scheduled for October 3 to test systems and ensure banks are prepared for the rollout.

Under the revised framework, cheques deposited between 10 a.m. and 4 p.m. will be scanned and transmitted to the clearing house in real time. Settlements will take place on an hourly basis from 11 a.m. onwards. 

The presenting bank will release funds to customers within an hour of settlement, subject to standard checks.

The rollout will take place in two phases. 

Between October 4, 2025, and January 2, 2026, banks must confirm cheques by 7 p.m., failing which the cheque will be automatically approved. 

From January 3, 2026, banks will have a maximum of three hours to confirm each cheque; for instance, a cheque received between 10 a.m. and 11 a.m. must be confirmed by 2 p.m.

RBI has instructed all banks to provide positive (honoured) or negative (dishonoured) confirmations during the session. In the absence of a response, the cheque will be deemed approved and included in settlement.

The change will apply across all banks under RBI’s three clearing grids — Delhi, Mumbai, and Chennai — ensuring uniform speed nationwide.

Customers can expect faster access to funds, quicker business payments, and improved transparency in tracking cheque status.

The move to continuous clearing marks the next stage in this evolution, aimed at reducing settlement risk and enhancing efficiency.

RBI has directed banks to keep customers informed during the transition to ensure seamless adoption of the new system.

(KNN Bureau)