Now Bank Cheques will be cleared on same day: RBI’s New Rules from Oct 4 to Speed Up Payments via Cheque…know details

Now Bank Cheques will be cleared on same day: RBI’s New Rules from Oct 4 to Speed Up Payments via Cheque…know details

New Delhi: Waiting two days for cheque clearance will soon be a past thing. Starting from October 4, 2025, the Reserve Bank of India (RBI) will implement new rules for banks, which will enable near real-time cheque processing, ensuring funds are credited within hours instead of days.

Under the new Cheque Truncation System (CTS), cheques deposited between 10:00 a.m. and 4:00 p.m. will be scanned and transmitted instantly to the central clearing house.

Also Read:- RBI News! Reserve Bank of India advises this to banks to prevent cyber frauds, check what has RBI said in its advisory

Unlike the current batch-based system, the clearing house will release cheque images continuously to drawee banks, which will have until 7 pm to either honour or reject the cheque. If no response is given, the cheque will be deemed approved.

RBI to implement hourly settlements for cheque payments

To further speed up the process, hourly settlements will be conducted from 11 am to 7 pm. After each settlement, banks must credit customer accounts within one hour of confirmation, subject to routine safeguards. This means that a cheque deposited at noon could reflect in the recipient’s account before evening.

RBI is expecting this to be a game-changer for individuals and businesses, easing cash flow constraints and enabling faster transactions. Phase 1 of the rollout will run from October 4, 2025, to January 2, 2026, with a 7 pm cut-off.

In Phase 2, starting January 3, 2026, each cheque will have its own three-hour “Item Expiry Time” for confirmation, making the process even more efficient.

RBI is aiming to boost India’s fast-changing financial ecosystem along with UPI where NEFT, RTGS fund transfer facilities are already imrpoved a lot.