Banks must scan cheques between 10 AM and 4 PM and confirm by 7 PM, after which pending items will be auto-settled.
Starting October 4, 2025, cheque clearance in India will get a major speed boost, thanks to the Reserve Bank of India’s (RBI) sweeping upgrade to the Cheque Truncation System (CTS). Customers will no longer have to wait up to two working days — most cheques will be cleared within hours, giving faster access to funds and improving overall banking efficiency.
Phase 1 (Oct 4, 2025 – Jan 2, 2026)
Under the new system, cheques will be scanned continuously between 10:00 AM and 4:00 PM in a single presentation session, with drawee banks required to confirm each cheque by 7:00 PM. If no confirmation is received, the cheque will be automatically approved for settlement the same night. By replacing multiple manual steps with the electronic transmission of scanned cheques, the process will become faster and more efficient, eliminating delays and bottlenecks.
Phase 2 (From Jan 3, 2026)
Under the updated process in phase 2, cheques must be confirmed within three hours of receipt, ensuring a much faster turnaround. Once settlement is completed, the credited amount will reflect in the account within one hour. For example, a cheque received between 10:00 AM and 11:00 AM must be confirmed by 2:00 PM, enabling quicker fund availability for customers.
The RBI says these changes bring India’s cheque clearance process closer to real-time banking, in line with global best practices. This upgrade is expected to benefit both individuals and businesses by improving liquidity, reducing settlement risk, and enhancing customer experience. Thus, from 4th October, be ready for cheque clearance to feel almost instantaneous — a long-overdue leap forward for India’s banking system.
Phase 1 (Oct 4, 2025 – Jan 2, 2026)
Under the new system, cheques will be scanned continuously between 10:00 AM and 4:00 PM in a single presentation session, with drawee banks required to confirm each cheque by 7:00 PM. If no confirmation is received, the cheque will be automatically approved for settlement the same night. By replacing multiple manual steps with the electronic transmission of scanned cheques, the process will become faster and more efficient, eliminating delays and bottlenecks.
Phase 2 (From Jan 3, 2026)
Under the updated process in phase 2, cheques must be confirmed within three hours of receipt, ensuring a much faster turnaround. Once settlement is completed, the credited amount will reflect in the account within one hour. For example, a cheque received between 10:00 AM and 11:00 AM must be confirmed by 2:00 PM, enabling quicker fund availability for customers.
The RBI says these changes bring India’s cheque clearance process closer to real-time banking, in line with global best practices. This upgrade is expected to benefit both individuals and businesses by improving liquidity, reducing settlement risk, and enhancing customer experience. Thus, from 4th October, be ready for cheque clearance to feel almost instantaneous — a long-overdue leap forward for India’s banking system.
