After October 4, the checks deposited in banks will be cleared in a few hours. Whereas earlier it used to take one to two working days (T+1). Indeed, the Reserve Bank of India (RBI) has announced a new system to make the check clearing system faster and effective. According to the news of PTI, the existing check tanks system (CTS) of the Reserve Bank, which is currently based on batch processing, is being replaced. Now it will be converted into the Continuus Clearing and Settlement on Realization System, in which the processing of the check will be continuously and on a real-time basis.
Deadline to implement new rules
This new system will be applicable in two phases
First Phase: 4 October 2025 to 2 January 2026
Second phase: fully effective from 3 January 2026
How will the new clearing process work?
Check presentation time: 10:00 am to 4:00 pm daily.
Banks will have to scan the checks received in the branches immediately and send it to the clearing house.
The bank on which the check has been issued on every check.
Positive confirmation (if the check is accepted).
Or it will be mandatory to give negative confirmation (if check is rejecting).
Phase 1: 4 October 2025
Draw Bank will have to confirm the check by 7 pm.
If the confirmation is not found, then the check will be considered automatically deemed approved and included in the settlement.
Phase 2: 3 January 2026
Each check will apply T+3 clear hours.
Example: If a check is deposited between 10 and 11 am, it will be confirmed by 2:00 pm.
If there is no confirmation in time, it will also be deemed approved.
When will customers get payment?
Soon after the settlement, the presenting bank will get confirmation.
The customer will then be paid immediately or within a maximum of 1 hour, provided all the other conditions are met.
Instructions given to banks:
RBI has asked banks to give customers complete information about this new check clearing process.
Also, banks have been instructed to be fully prepared for the new system by the scheduled dates.
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