RBI to Launch Faster Cheque Clearance System from October 4

The Reserve Bank of India (RBI) is set to roll out a new Cheque Truncation System (CTS) on October 4, enabling banks to clear customer-presented cheques within hours. The upgraded system will allow continuous cheque presentation, scanning, and processing over two days, significantly reducing the current T+1 (two-day) settlement cycle to near real-time.

Customers can present cheques at banks between 10 a.m. and 4 p.m. daily. Once received, the cheques will be immediately forwarded to clearing houses.

In the first phase (October 24, 2025 to January 5, 2026), drawee banks must confirm the status of received cheques by 7 p.m. each day. Failure to do so will result in automatic inclusion for settlement.

From January 6, 2026, under phase two, the confirmation deadline will be advanced to 2 p.m. Post-settlement, clearing houses will notify banks of the cheque’s status—positive or negative. Payments will be released accordingly.

The RBI has urged all banks to ensure readiness and make necessary preparations for the transition to the new CTS.