RBI to clear cheques within hours

The North News

Mumbai, August 14

The Reserve Bank of India (RBI) will overhaul the cheque clearing process from 4 October 2025, allowing cheques to be processed within hours instead of the current T+1 day cycle. Under the new system, cheques will be scanned and presented immediately, with continuous processing during working hours. The reform will be rolled out in two phases.

In Phase 1, from 4 October 2025, banks will operate a presentation window from 10:00 to 16:00, with drawee banks required to confirm cheque status by 19:00. If no response is received, the cheque will be automatically deemed approved. In Phase 2, beginning 3 January 2026, drawee banks must confirm cheques within three hours of receipt, and funds will be credited within one hour of clearance. For example, a cheque received between 10:00 and 11:00 must be confirmed by 14:00, with payment to customers released within an hour after security checks.

The RBI said the move will speed up processing, reduce clearance risks and enhance customer experience. Banks have been told to prepare systems and notify customers ahead of the changes.