RBI Introduces Continuous Clearing System: Cheque Clearance in Just a Few Hours

The Reserve Bank of India (RBI) has announced to convert the Check Truncation System (CTS) into Continuous Clearing and Settlement on Realization. This will reduce the duration of check clearing in the bank from two days to just a few hours. This step has been taken by the central bank to speed up the check clearing system.

In the information given by the RBI, it was told that the new system will be implemented in two phases. The first phase will be applicable from October 4, 2025 to January 3, 2026, while the second phase will be applicable from January 3.

RBI Announces Major Overhaul in Cheque Clearing System

The Reserve Bank of India has announced to convert the Check Truncation System (CTS) into Continuous Clearing and Settlement on Realization. This will reduce the duration of check clearing in the bank from two days to just a few hours. This step has been taken by the central bank to speed up the check clearing system.

Key Dates: Two-Phase Implementation of the New Cheque Clearance System

Phase 1 – October 4, 2025 to January 3, 2026

Phase 2 – From January 3, 2026 onwards

In the information given by RBI, it was told that the new system will be implemented in two phases. The first phase will be applicable from October 4, 2025 to January 3, 2026, while the second phase will be implemented from January 3 onwards.

How the New Cheque Clearing System Will Work

Presentation Session Timing: 10 AM to 4 PM - Giving detailed information about the working of the new system, RBI said that there will be a single presentation session in which the check will have to be presented from 10 am to 4 pm. Under this, the bank receiving the check will have to scan the check and send it to the clearing house. After this, the clearing house will send the image of that check to the bank paying the amount.

Confirmation Session Timing: 10 AM to 7 PM - After this, the conformation session will be from 10 am to 7 pm. In this, the paying bank will have to give positive or negative conformation on that check.

Item Expiry Time and Faster Processing - The big thing here is that every check will have an 'item expiry time', by which time it is necessary to give conformation. RBI said that in the first phase of Continuous Clearing and Settlement on Realization, the 'item expiry time' for clearing the cheque for all banks has been fixed at 7 pm. In the second phase, it will be reduced to three hours. This means that the bank will have to clear the cheque within three hours of its presentation. After the arrival of CTS, there will be no entry of the presentation of the cheque.