The RBI mentioned there will probably be a single presentation session from 10:00 AM to 4:00 PM and cheques obtained by the branches shall be scanned and despatched to the clearing home by the banks instantly and repeatedly through the presentation session.
Right here comes a chunk of fine information for financial institution clients. The RBI says banks will clear cheques inside few hours from October 4. The central financial institution mentioned it is going to introduce a brand new mechanism from October 4 for clearance of cheques inside hours of being introduced to banks, lowering the present time interval of as much as two working days.
RBI mentioned cheques will probably be scanned, handed in just a few hours
The RBI mentioned the cheques will probably be scanned, introduced, and handed in just a few hours and on a steady foundation throughout enterprise hours. The clearing cycle will probably be diminished from the current T+1 days to a couple hours.
Cheque Truncation System (CTS) at present processes cheques with a clearing cycle of as much as two working days.
To enhance the effectivity of cheque clearing and cut back settlement threat for contributors, and to boost buyer expertise, the RBI has determined to transition CTS from the present method of batch processing to steady clearing with ‘on-realisation-settlement’.
The Reserve Financial institution of India (RBI) has issued a round for introduction of Steady Clearing and Settlement on Realisation in CTS.
“It has been determined to transition CTS to steady clearing and settlement on realisation in two phases. Section 1 shall be carried out on October 4, 2025 and Section 2 on January 3, 2026,” it mentioned.
Single presentation session from 10:00 AM to 4:00 PM
There will probably be a single presentation session from 10:00 AM to 4:00 PM. Cheques obtained by the branches shall be scanned and despatched to the clearing home by the banks instantly and repeatedly through the presentation session, RBI mentioned.
“For each cheque introduced, the drawee financial institution shall generate both optimistic affirmation (for honoured cheques) or damaging affirmation (for dishonoured cheques),” it mentioned.
Throughout Section 1 (from October 4, 2025 to January 2, 2026), drawee banks will probably be required to verify (positively/negatively) cheques introduced on them, newest by the tip of the affirmation session (7:00 PM), else these will probably be deemed to have been accredited and included for settlement. In Section 2 (from January 3, 2026), the merchandise expiry time of cheques shall be modified to T+3 clear hours.
Giving an instance, the RBI mentioned the cheques obtained by drawee banks between 10:00 AM and 11:00 AM must be confirmed positively or negatively by them by 2:00 PM (3 hours from 11:00 AM).
Right here’s what RBI mentioned on affirmation of cheques
Cheques for which affirmation isn’t supplied by the drawee financial institution within the prescribed 3 hours shall be handled as deemed accredited and included for settlement at 2:00 PM. The RBI additional mentioned that on completion of settlement, the clearing home will launch the knowledge of optimistic and damaging confirmations to the presenting financial institution.
“The presenting financial institution shall course of the identical and launch the fee to the shoppers instantly, however not later than 1 hour from profitable settlement, topic to common safeguards,” it mentioned.
RBI directed banks to make their clients adequately conscious of the modifications within the cheque clearing course of. Banks have additionally been requested to be in readiness to take part in steady clearing in CTS on the prescribed dates.
With inputs from PTI
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