The RBI’s new cheque clearance system is a game changer! Introduced on October 4, 2025. It is designed to clear cheque within few hours, replacing the old system that took upto two working days.
Objective~ The main aim is to enhance efficiency, reduce settlement risk, improve customer experience and make banking more faster and transparent.
💡Same Day Cheque Clearance: What is it?
It is a process to clear cheques in a single day and complete transaction within 24 hours.
- The change means that bank will not clear cheque in batches.
- Insted, they will process every cheque as and when it comes.
- The continuous clearing of cheques will ensure that funds reach customer’s account within a day.
💡How Will The New Cheque Clearance System Work?
According to RBI, cheques deposited between 10am and 4pm will be scanned and sent to the clearing house immediately.
- Banks will settle payments every hour starting at 11 am.
- In Phase 1 (October 4, 2025 – January 2, 2026), banks must confirm cheques by 7 p.m.; otherwise, the cheque will be automatically approved.
- In the second phase (starting January 3, 2026), banks will have only 3 hours to validate each cheque. For example, cheques received between 10:00 AM and 11:00 AM will need to be validated by 2:00 PM.
- After settlement is complete, the presenting bank will release the funds to the customer within 1 hour, subject to the usual security measures.
💡What Does This Mean For Customers?
- Faster access to funds
- Faster payments for businesses
- Consistent clearing speeds across India
- Easy check status tracking
- Customers are advised to stay updated with their banks for smooth processing during the transition.
💡Is This Better Than The Current System?
With continuous clearing in place, cheques are typically processed within 1 to 2 business days:
- Funds could reach accounts within a few hours.
- Clearing speeds would be consistent across the country.
- Tracking check status would become easier and more transparent.
- This change would also reduce settlement risk for banks and improve overall efficiency.
Banking Just Got a Speed Boost~ No More Waiting, Just Instant Fund Credit.