RBI Reserve Bank of India has announced a significant overhaul to the current Cheque Truncation System (CTS), shifting from batch-based to continuous clearing and settlement on realisation. This reform aims to drastically reduce cheque clearance times from up to two working days to just a few hours. Phase 1 Starting October 4, 2025.Single cheque presentation session from 10:00 AM to 4:00 PM.
Cheques will be scanned and transmitted continuously during this window. Drawee banks must provide confirmation (positive or negative) by 7:00 PM, or the cheque will be deemed approved for settlement.
Presenting banks must credit funds to beneficiaries within one hour after settlement.
