RBI’s New Cheque Clearing Rules: Same-Day Settlement Begins October 4
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In a significant move to modernize India’s banking infrastructure, the Reserve Bank of India (RBI) has introduced a new cheque clearing system that ensures cheques are cleared within a few hours on the same day of deposit. This change, effective from October 4, 2025, replaces the previous batch-based processing method with continuous, real-time settlement. Under the new system, banks will process and settle cheques continuously between 10 AM and 4 PM, with a confirmation deadline of 7 PM during Phase 1 (October 4, 2025, to January 2, 2026). If a cheque is not confirmed by 7 PM, it will be auto-cleared. Phase 2, beginning January 3, 2026, will shorten the confirmation window to three hours, further expediting the process.
Private banks, including HDFC Bank and ICICI Bank, have announced their participation in this initiative. They urge customers to ensure their accounts have sufficient funds and that all cheque details are accurately filled out to avoid delays or rejections. Additionally, the use of the Positive Pay System is encouraged, especially for cheques exceeding ₹50,000. This system requires customers to submit key cheque details to the bank at least 24 working hours before depositing the cheque, enhancing security and reducing the risk of fraud.
The implementation of this new system is expected to improve cash flow, ensure consistent service across India’s banking network, and increase transaction transparency. With this move, RBI aims to push India’s banking toward a more modern, real-time framework for cheque processing.
