Winning Bizness Desk
Mumbai. The Reserve Bank of India has postponed the next stage of its plan to speed up cheque clearance, allowing banks more time to prepare for tighter settlement timelines. With this decision, customers depositing cheques will continue to receive credit largely on the next working day. The move delays the shift towards near real-time cheque settlement, which was earlier planned to begin from January 3, 2026. The central bank has said a new rollout date will be announced later.
Why RBI puts phase two on hold
In a circular issued on December 24, the RBI confirmed that phase two of the Continuous Clearance and Settlement system has been deferred. However, the regulator made it clear that phase one will continue without any changes. The decision is aimed at ensuring banks and clearing systems are fully ready before stricter timelines are enforced. RBI officials indicated that operational stability remains a key priority.
How the current cheque system functions
Under the existing setup, customers can deposit cheques at bank branches between 9 am and 3 pm. Banks are allowed to verify, accept or reject cheques from 9 am till 7 pm on the same day. This process enables smooth handling of cheques, even though faster, near real-time settlement has been postponed.
Key features of phase one system
The first phase of the Continuous Clearance and Settlement system under the Cheque Truncation System became effective on October 4, 2025. It replaced the old batch-based clearing method and brought several improvements, including:
- Removal of fixed batch timings
- Immediate scanning of cheques after deposit
- Instant transmission of cheque images to the clearing house
- Faster scrutiny by the drawee bank
- Automatic clearance if no response is received within the set time
- Cheque deposit timings remain the same
- Next-day credit will continue in most cases
- No immediate move to three-hour clearance
- A fresh date for phase two will be announced later
These changes have reduced delays, though credits mostly reflect the next working day.
What phase two was planned to deliver
The postponed second phase was designed to significantly shorten cheque clearance time. Banks were to approve or reject cheques within three hours of receiving their images. If no action was taken within this period, the system would automatically clear the cheque. This could have allowed same-day or much faster credit for many customers.
What cheque users should expect now
For the time being, customers should expect the current process to continue. The RBI has clarified that no changes will be made until phase two is formally rolled out. Key points for customers include:
The RBI’s cautious approach reflects its intent to balance speed with system reliability before introducing tighter automated deadlines.
