RBI to Introduce Faster Cheque Clearance from October 4, 2025

Processing time to reduce from two days to just a few hours under new settlement system

Beginning October 4, 2025, banks across India will clear cheques within a few hours instead of the existing two-day process. The Reserve Bank of India (RBI) announced the rollout of a new cheque transaction system by shifting to Continuous Clearing and Settlement on Realization (CCSR).

 

The new system will be implemented in two phases. The first phase will be effective from October 4, 2025, to January 3, 2026, while the second phase will commence thereafter. Under this mechanism, there will be a daily presentation session where cheques must be submitted between 10 AM and 4 PM. The presenting bank will scan the cheque and send it electronically to the clearing house, which will then forward it to the paying bank.

 

For cheque return or remarks, the time window will remain from 10 AM to 7 PM, with an expiry deadline at 7 PM. If no response is received within this timeframe, the cheque will be considered cleared. In the second phase, clearance time will be reduced further, allowing for settlement within three hours.

 

The RBI emphasized that faster clearance will enhance efficiency in banking transactions and reduce risks associated with delayed settlements.