RBI NEW RULES FOR CHEQUE CLEARING WITHIN SAME DAY
The Reserve Bank of India (RBI) has implemented new rules for cheque clearing, transitioning from a batch-based system to a continuous clearing and settlement on realization model. This change aims to significantly reduce the time it takes for cheques to clear, making funds available within hours instead of the previous 1-2 business days.
The new system is being rolled out in two phases:
- Phase 1 (October 4, 2025 – January 2, 2026): Banks will scan and send cheque images to the clearing house continuously between 10 AM and 4 PM. The drawee bank must confirm each cheque (either honor or dishonor) by 7 PM on the same day. If no confirmation is received, the cheque will be automatically deemed approved for settlement.
- Phase 2 (Starting January 3, 2026): The confirmation timeframe will be reduced. Drawee banks will have 3 hours to confirm each cheque after it’s presented. For example, a cheque received between 10 AM and 11 AM must be confirmed by 2 PM. If no confirmation is provided within this window, the cheque will be deemed approved.
Under this new system, settlements will occur hourly starting from 11 AM. Once settlement is complete, the presenting bank is required to release the funds to the customer immediately, or no later than 1 hour after settlement, subject to usual safeguards
Key Features of the New System
- Continuous Processing: Cheques are no longer handled in batches but processed as they are received during the presentation session from 10 AM to 4 PM.
- Real-time Image Transfer: Scanned cheque images are immediately sent to the clearing house and then to the drawee bank.
- Continuous Confirmation: Drawee banks must confirm cheques in real-time within the specified window (up to 7 PM in Phase 1, and 3 hours in Phase 2).
- Automatic Approval: If the drawee bank fails to confirm a cheque within the deadline, it will be automatically approved and included in the settlement.
Positive Pay System for Enhanced Securit
The RBI has also made Positive Pay mandatory for cheques above ₹5 lakh and strongly recommends it for cheques above ₹50,000. Under this system, customers must provide key cheque details (account number, cheque number, date, amount, and beneficiary name) to their bank in advance. The bank will then verify these details when the cheque is presented for clearing. The RBI only provides dispute resolution protection for cheques validated under this Positive Pay system.
Benefits for Customers
- Faster Access to Funds: Money will be credited within hours, significantly reducing waiting time.
- Real-Time Processing: Cheques are handled continuously during business hours.
- Automatic Approval: Reduces delays caused by banks failing to respond within the deadline.
- Uniform Clearing Speed: Ensures consistent processing times nationwide.
Banks have been instructed by the RBI to make their customers aware of these new procedures and ensure their systems are ready for the transition