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If you have deposited a cheque in the bank till now, then you will know that it often takes 2 days to get cleared. But now this problem is going to end. Reserve Bank of India (RBI) is going to start a new system of cheque clearing from 4 October 2025, in which your cheque will be cleared in a few hours.
How will the new system work?
RBI said that the existing Cheque Truncation System will now be changed from batch process to “Continuous Clearing and Settlement on Realization”. This means that as soon as the cheque is deposited in the bank, its scanned copy will be immediately sent to the clearing house and then sent to the paying bank. From there, the bank will have to approve or reject the cheque within the stipulated time.
Due to this, the time taken for cheque clearance in the bank will be reduced from two days to just a few hours. This step has been taken by the central bank to speed up the cheque clearing system.
The new system will be implemented in two phases
First phase: From 4 October 2025 to 3 January 2026, the bank has to give confirmation by 7 pm after receiving the cheque. If the bank does not give confirmation, the cheque will be considered automatically accepted.
Second step: From January 3, 2026, the bank will have to clear the cheque within just 3 hours of receiving it. For example, if the cheque is deposited between 10 am and 11 am, then it will have to be approved or rejected by 2 pm.
Presentation and Confirmation Session
There will be a cheque presentation session for all banks from 10 am to 4 pm, in which cheques will be continuously scanned and sent. The confirmation session will run from 10 am to 7 pm. In the first phase, the “item expiry time” will be 7 pm, while in the second phase it will be reduced to just 3 hours.
Customers will get benefit
After this change, customers will not have to wait long to get money. The bank will have to put the money in the customer’s account within a maximum of 1 hour after settlement. This will reduce the time taken in check clearing and your money will be available quickly.
Preparation to create a framework for the use of AI
RBI has also presented a report on creating a framework for the safe and responsible use of Artificial Intelligence (AI) in the financial sector. It gives 26 suggestions under 7 principles and 6 strategic pillars regarding the use of AI so that it is used in a safe and effective manner.
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