RBI Mandates Same Day Cheque Clearance: What Will Change For Bank Customers From 4 Oct? Explained In 5 Points

RBI Mandates Same-Day Cheque Clearance: Banks are set to implement the same-day cheque clearance from Saturday, October 4, to fast-track transactions through cheque systems. The Reserve Bank of India (RBI) had scheduled a trial run of the new cheque clearance system on Friday.

The development has come nearly two months after the RBI had mandated all banks to shift to the new cheque clearance system to provide better services to customers. If you were unaware about the recent shift, then here are all the details about the new cheque clearance system and its benefits.

Same-Day Cheque Clearance: What Is It?

It is a process to clear bank cheques in a single day and complete the transaction within 24 hours. All the banks will provide the new services by shifting from batch-based process to continuous clearing and settlement on realisation.

The change means that banks will not clear cheques in batches. Instead, they will process every cheque as and when it comes. The continuous clearing of cheques will ensure that funds reach customers' accounts within a day.

How Will Same-Day Bank Cheque Clearance Work?

When a customer submits a bank cheque at a branch between 10 am and 4 pm, bank officials are required to scan the cheque instantly and send it for clearing the transactions. Cheque settlements between banks will happen every hour from 11 am. The paying bank is required to confirm the cheque by 7 pm, and if the confirmation is not received within time, then the cheque will be considered auto-approved.

How Will It Benefit Customers?

The same-day cheque clearance will ensure that bank customers can get the money in a single day. Under the current system, cheques are cleared within one to two working days. It will also ensure that a bank customer submitting the cheque in Kolkata, or Bengaluru, or any other city in the country, will get the cheque cleared within fixed duration.

Cheque Clearance System Phase 2

The new cheque clearance system is planned to be introduced in two phases. Phase 1 begins on October 4, 2025, followed by Phase 2 on January 3, 2026. Under Phase 2 of the cheque deposit facility effective January 3, 2026, banks must clear cheques within three hours of presentation by customers.

Customer Awareness

The bank must release funds immediately or within one hour after settlement completion once approval is received. The RBI has instructed banks to inform customers about these changes and ensure they are prepared for continuous cheque clearing from specified dates.

This initiative reflects RBI's commitment to improving banking processes and enhancing customer satisfaction through efficient service delivery.

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