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RBI Cheque Payment Rules: The Reserve Bank of India (RBI) has given relief to crores of bank customers who make payments by cheque. Till now, it takes 2 to 3 days for the money to reach the account on payment by cheque. But now this will happen in just a few hours
The Reserve Bank of India ( RBI) has given relief to crores of bank customers who make payments by cheque . Till now , it takes 2 to 3 days for the money to come into the account on payment by cheque. But now this will happen in just a few hours. RBI has changed the rules and process of cheque payment. These new rules will come into effect from 4 October 2025. That is, after Dussehra and before Diwali, it will take just a few hours instead of three days for crores of bank customers to make and receive payment by cheque. That is, the money will come into the account on the day the cheque is deposited in the bank.
How much time does it take for a check to be cleared now?
At present, it takes T+1 i.e. the next working day for a cheque to be cleared. If the cheque is from another bank, it can take up to three days. Now this system will be reduced to a few hours instead of days.
What will change?
Currently, in the Check Truncation System ( CTS), cheques are processed in batches, which takes one to two days for clearing. In the new system, the cheque will be scanned and sent electronically immediately and will be processed continuously throughout the day ( Continuous Clearing) . That is, cheque clearing will continue continuously during banking hours .
What is CTS
CTS is an electronic system that eliminates the need to carry a physical copy of the cheque . Instead , the image and details of the cheque are sent electronically to the paying bank . This speeds up the process and also reduces the chances of fraud .
The system will be implemented in two phases
RBI said that this change will be implemented in two phases . The first phase will run from October 4, 2025 to January 2 , 2026. During this period , banks will have to verify (positive or negative) all the cheques received till 7 pm . If the bank does not verify on time, then the cheque will be considered accepted and included in the settlement count.
The second phase will start from January 3, 2026. In this, the rules will become more strict. Verification of every check will have to be done within 3 hours of receiving it . For example, if a bank receives a check between 10 am and 11 am, then it will have to verify it by 2 pm. If verification is not done within this time limit, then it will be considered accepted .
What will be the benefit to the customers?
Under the new rule, as soon as the process is completed, the bank presenting the cheque will immediately issue the payment to the customer. This will be done within an hour of settlement of the payment, provided all security checks are completed. That is, if you deposit a cheque in the morning, it is possible that the money will reach your bank account by the same afternoon or evening.
What should the bank do?
RBI has instructed all banks to give complete information about this change to their customers . Also , they have to keep their technical and operational processes ready so that the work of clearing cheques can be done continuously from the due date .
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