By Gaurav Krishna

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Mumbai, October 4: Starting today, India’s cheque clearing system moves from the traditional batch-based process to a continuous, near real-time settlement model, drastically reducing the time it takes for funds to reflect in accounts. The Reserve Bank of India (RBI) announced that cheques deposited from October 4 will be scanned, presented, and cleared continuously throughout business hours, enabling faster access to money for customers and smoother cash flow for businesses. Under the new system, cheques deposited between 10 am and 4 pm will be instantly scanned and sent to the clearing house. Settlements between banks will occur every hour starting from 11 am, with the drawee bank required to confirm by 7 pm. If the bank fails to respond within this window, the cheque will be auto-approved, ensuring faster processing and minimizing delays experienced under the earlier 1–2 business day clearing cycle. RBI New Cheque Clearing System: No More Waiting for Cheque Clearing, New Rules Kick In on October 4; Check Details. India’s Cheque Clearing Goes Real-Time From Today: Know the Process The RBI rollout is structured in two phases. Phase 1 (Oct 4–Jan 2, 2026) mandates a 7 pm confirmation deadline, while Phase 2 (from Jan 3, 2026) reduces the response time to just three hours, making banks more efficient and expediting fund transfers. Once the drawee bank confirms, the clearing house informs the presenting bank, which then credits the amount within an hour. RBI New Cheque Clearing System: Banks To Clear Cheques Within Hours Starting October 4, Know the Process. Additionally, the Positive Pay system enhances security for high-value cheques. For cheques above ₹50,000, customers are advised to provide details such as account number, cheque number, date, amount, and beneficiary in advance. Cheques above ₹5 lakh require mandatory Positive Pay verification to avoid rejection. This mechanism helps prevent fraud and ensures dispute resolution protection under RBI guidelines. Customers are encouraged to maintain sufficient balances and accurately file cheque details to avoid delays or bounces. According to Adhil Shetty, CEO of Bankbazaar.com, faster cheque clearance complements growing digital payments like UPI, NEFT, and RTGS, enhancing customer experience while helping businesses manage cash flow efficiently. With continuous cheque clearing now live nationwide, India takes a major step toward modernising traditional banking processes, making cheque transactions faster, safer, and more reliable than ever.