Summary: Good News: The RBI has asked banks to make important changes. The RBI has established two stages for cheque clearance. The first stage has already been implemented, in which cheque deposited in the morning are cleared by evening. Here’s a special correspondent’s report on the other changes…
Starting January 3rd, bank customers’ cheque will be cleared within three hours. To achieve this, the RBI has asked banks to make significant changes. The RBI has established two phases for cheque clearance. The first phase has already been implemented, in which cheque deposited in the morning are cleared by evening. The second phase will be implemented from January 1st. In this, the funds will be deposited into the account in whose name the cheque is drawn within three hours of depositing the cheque.
Preparations to discontinue alerts: Banks have requested approval from the RBI to change the rules for SMS alerts. They want to eliminate the need to send SMS alerts for transactions less than ₹100.
Sufficient funds are required in the account for payment.
The RBI is going to make the cheque payment process even faster. Starting January 3rd, cheque will be cleared within three hours. However, when issuing cheque, account holders must ensure they have sufficient funds in their accounts. A lack of sufficient balance will result in a bounced cheque.
The RBI has set two phases to reduce cheque clearance times. The first phase has already been implemented on October 4th. The second phase will be implemented on January 3rd, 2026. The RBI has directed banks to be fully prepared for the next phase.
Under the first phase, starting October 4th, banks have been continuously scanning cheque between 10:00 AM and 4:00 PM and sending them to the clearing house. The clearing house then sends the image of the cheque to the paying bank. The paying bank must clear the cheque by 7:00 PM in the first phase. This means that currently, cheque presented in the morning are being cleared by evening.
Meanwhile, the clearance system will change significantly in the second phase. Within three hours of a cheque being deposited, the funds will be deposited into the account in whose name the cheque is drawn. If the paying bank does not respond regarding cheque clearance, the cheque will be automatically deemed accepted.
Responsibility of banks will increase
Following RBI instructions, banks have begun preparations for the second phase. Each bank will be tasked with scanning and image-transferring cheque deposited in the bank to the clearinghouse, and clearing the cheque received for payment. A team of two bank officials will be responsible for cheque payment, as the new process will increase responsibilities.
Make banks aware
The RBI has initiated an effort to educate customers about the new cheque clearance rules. Messages are being sent to customers through social media and WhatsApp. Banks have also been instructed to inform customers about the new cheque clearance rules.
Customers should ensure they have sufficient funds in their account, especially when issuing a cheque, as a penalty may be imposed if the funds are not received.
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