NPCI Admits Initial Glitches in New Cheque Clearing System

Over ₹3 lakh crore worth of cheques cleared so far under new centralized process

The National Payments Corporation of India (NPCI) acknowledged that a few technical issues continue to affect the country’s newly launched centralized cheque clearing system, which came into effect on October 4, 2025.

 

NPCI officials stated that while most transactions are being processed successfully, some banks and systems are still facing initial operational challenges. The corporation, however, assured that these glitches are being swiftly resolved to ensure seamless clearing in the coming days.

 

“Since October 4, we have successfully cleared more than 2.56 crore cheques amounting to over ₹3,01,000 crore through the new centralized system,” NPCI said in its official communication.

 

It added that all cheques presented by banks have been processed — with both positive and negative remarks being recorded — and in most cases, funds were credited to the beneficiaries’ accounts on the same day.

 

Centralized System to Improve Efficiency

The Reserve Bank of India (RBI) had introduced the new cheque clearing mechanism to modernize the traditional interbank settlement process. The centralized platform, operated by NPCI, is intended to reduce manual intervention, improve speed and transparency, and enable faster settlement across the banking network.

 

However, NPCI noted that during the first few days of implementation, some customers experienced delays in cheque clearance, largely due to synchronization issues between bank servers and the new central clearing system.

 

Transition Phase Underway

NPCI said the transition to the upgraded digital framework is being monitored closely. “A few initial issues were expected as part of such a large-scale technology migration. We are continuously coordinating with banks to stabilize processes,” the corporation said.

 

It also reiterated that the new framework represents a significant step toward enhancing efficiency, reliability, and customer convenience in India’s banking operations.

 

NPCI, which manages key payment systems including UPI, RuPay, and the National Automated Clearing House (NACH), emphasized its commitment to making cheque processing as smooth and transparent as digital transactions.