By Team Latestly

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Mumbai, October 2: From October 4, 2025, the long wait of up to two days for a cheque to clear will become a thing of the past. The Reserve Bank of India (RBI) is introducing a new mechanism from October 4 for the clearance of cheques within hours of being presented to banks, reducing the current time period of up to two working days. According to the RBI, cheques will now be scanned, presented, and passed in a few hours and on a continuous basis during business hours. The clearing cycle will be reduced from the present T+1 days to a few hours. 7th Pay Commission DA Hike: Centre Announces 3% Hike in DA and DR With Effect From July 1, 2025; Arrears To Be Paid With October Salary Before Diwali. RBI Introduces New Cheque Clearing System The new cheque clearing system will roll out in two phases to streamline and expedite settlements. In Phase 1, effective October 4, 2025, to January 2, 2026, drawee banks are required to confirm each cheque, either honoured or dishonoured, by 7 PM on the same day. If no response is received by the cut-off time, the cheque will be automatically considered approved and included in that day’s settlement. Dry Day List October 2025: When Will Bars and Liquor Shops Remain Shut? Check Full List of Dry Days in Mumbai, Pune, Delhi, Bengaluru and Other Cities. From January 3, 2026, Phase 2 comes into effect with stricter timelines. Banks must confirm cheques within three hours of receipt. For instance, a cheque deposited at 11 AM must be confirmed by 2 PM. If not confirmed within the window, it will be deemed approved and settled accordingly. The move aims to improve efficiency and reduce delays in the banking system.