Cheque Clearance Rules: Reserve Bank of India (RBI) has decided to make a big change related to the Cheque. From October 4, 2025, the time for clearing the Cheque will be reduced significantly. Till now it used to take 2 to 3 working days for the Cheque to be cleared, but in the new system this work will be done in a few hours.
Cheque Clearance Rules: Reserve Bank of India (RBI) has decided to make a big change related to the Cheque. From October 4, 2025, the time for clearing the Cheque will be reduced significantly. Till now it used to take 2 to 3 working days for the Cheque to be cleared, but in the new system this work will be done in a few hours. From October 4, the old problem of Cheque clearance will be over to a great extent. Now you will not have to wait for days for the Cheque to pass.
What is the new system?
Till now Cheque clearing used to run on batch processing system. That is, banks send Cheques at a fixed time and then it is processed and cleared. Now it is being changed to Continuous Clearing and Settlement on Realization model. This means that the checks will be cleared continuously throughout the day, which will also save time.
How will the process be?
Banks will continuously scan the Cheques from 10 am to 4 pm and send them to the clearing house.
The clearing house will immediately send the image of the Cheque to the bank on which the Cheque has been issued.
The bank will have to tell at the stipulated time on the same day whether the Cheque will be passed or bounced.
Phase 1 – From October 4: The bank will have to give confirmation by 7 pm. If the bank does not respond, the Cheque will be considered automatically passed.
Phase 2 – From January 3, 2026: The confirmation time will be further reduced to just 3 hours. For example, the Cheque received between 10 am and 11 am will have to be confirmed by 2 pm.
How will the customers benefit?
Money will come into the account fast: Clearing and settlement will happen every hour.
Once the cheque is passed, the bank will have to give the money to the customer within an hour (after necessary Chequeing).
This will provide relief to traders, employees and general customers.
RBI’s aim
- To make transactions fast and easy.
- To eliminate delays in settlement.
To improve customer experience.
Along with this, RBI has also allowed that the balance surplus rupees kept in foreign currency can be invested in government bonds. This will increase liquidity in the market. Both the customer and the bank will benefit from the new system in terms of time and service.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
