RBI to Clear Cheques Within Hours from October 4
The Reserve Bank of India (RBI) has announced a major reform to slash cheque clearing times. Starting October 4, cheques will be scanned, presented, and processed within hours instead of the current two-day cycle.
What Will Change
Under the new system, cheques submitted during the 10 AM to 4 PM presentation window will be continuously processed during business hours. In the first phase, running until January 2, 2026, drawee banks must confirm cheque status — honoured or dishonoured — by 7 PM. If no response is received, the cheque will be automatically approved for settlement.
Real-Time Settlement in Phase 2
From January 3, 2026, cheque confirmations will be required within three hours of presentation. For example, a cheque received at 11 AM must be confirmed by 2 PM. Unconfirmed cheques will be deemed approved at the end of the three-hour window.
Faster Customer Credit
Once settlement is completed, presenting banks must credit the funds to customers within one hour, subject to standard checks. The change moves the cheque clearing system from batch processing to continuous real-time settlement, benefiting both individuals and businesses.
