No More 2-Day Wait! RBI To Bring Same-Day & Hourly Cheque Clearance Starting This Month

Come October 2025, the Reserve Bank of India (RBI) will make it possible for cheques to clear within hours instead of days. From that month, cheque processing will shift to a continuous system where settlements happen on the same day and, eventually, every hour, according to India’s central bank.

This move marks the end of the current batch-based method, where cheques are processed in fixed cycles that can take up to two working days. Instead, banks will scan and send cheques as they come in, and the clearing house will forward them to the bank on which they are drawn without delay.

Two-stage implementation

The rollout will take place in two stages:

Phase 1 — Daily Clearing Window
Starting October 4, 2025, banks will process cheque presentations from 10:00 AM to 4:00 PM and ensure that funds reach the recipient’s account by 7:00 PM. If the issuing bank does not confirm or reject the cheque by that time, it will automatically be treated as cleared.

Phase 2 — Three-Hour Clearance Rule
In the second phase, timelines will be tightened with a “T+3 clear hours” expiry.
For example, cheques presented between 10:00 AM and 11:00 AM must be confirmed by 2:00 PM on the same day. Any unconfirmed cheques within this three-hour window will be deemed approved and included for settlement.

Settlement and confirmation process

Settlements will be based on realisation rather than presentation. Beginning at 11:00 AM each day, hourly settlements will take place, covering both confirmed and deemed-approved cheques.

Negative confirmations for dishonoured cheques will be excluded from settlement. After each settlement cycle ends, the clearing house will notify presenting banks, which must credit customer accounts immediately — and no later than one hour after settlement — subject to standard safeguards.

Also Read: RBI to set up public repository of digital lending apps to check unauthorised players | Republic World

Faster processing compared to current CTS

At present, the Cheque Truncation System (CTS) can take up to two working days to clear a cheque. The RBI’s plan will cut this drastically, ensuring that funds are available much faster while reducing settlement risks for banks.

Next probable steps

The RBI has directed banks to inform customers about these changes and upgrade their systems to handle continuous cheque processing from the start dates of each phase.

According to the central bank, the initiative will make cheque transactions quicker, more reliable, and more transparent — representing a major improvement for both customers and the banking system.