The Reserve Bank of India (RBI) is set to introduce a new mechanism for cheque clearance, significantly reducing settlement times from the current T+1 days to just a few hours. This transition to continuous clearing with 'on-realisation-settlement' will be implemented in two phases to enhance banking efficiency.
- Phase 1 (October 4, 2025 - January 2, 2026): Drawee banks must confirm cheques by 7:00 PM on the day of presentation. Any unconfirmed cheques will be automatically deemed approved for settlement.
- Phase 2 (From January 3, 2026): The item expiry time for cheques will be changed to T+3 clear hours. For example, cheques received by banks between 10:00 AM and 11:00 AM will require confirmation by 2:00 PM on the same day.
This initiative by the RBI aims to significantly speed up cheque-based transactions across the Indian banking system, benefiting both individuals and businesses.
Source: News18