RBI Update: Now the cheque will be cleared in a few hours, RBI has introduced a new system, how will it work?

If you have deposited a check in the bank till now, then you will know that it often takes 2 days to get cleared. But now this problem is going to end. The Reserve Bank of India (RBI) is going to start a new system of check clearing from October 4, 2025, in which your check will be cleared in a few hours.

How will the new system work?

RBI said that the existing Check Truncation System will now be removed from the batch process and changed to "Continuous Clearing and Settlement on Realization". This means that as soon as the check is deposited in the bank, its scanned copy will be immediately sent to the clearing house and then sent to the paying bank. From there, the bank will have to approve or reject the check within the stipulated time.

With this, the timing of the check being cleared in the bank will be reduced from two days to only a few hours. This step has been taken by the central bank to speed up the check clearing system.

The new system will be implemented in two phases.

First phase: From 4 October 2025 to 3 January 2026, the bank will have to give confirmation by 7 pm after receiving the check. If the bank does not give confirmation, the check will be considered automatically approved.

Second phase: From 3 January 2026, the bank will have to clear the check within just 3 hours of receiving it. For example, if the check is deposited between 10 am and 11 am, then it will have to be approved or rejected by 2 pm.

Presentation and confirmation session

There will be a check presentation session for all banks from 10 am to 4 pm, in which checks will be scanned and sent continuously. The confirmation session will run from 10 am to 7 pm. In the first phase, the “item expiry time” will be 7 pm, while in the second phase it will be reduced to just 3 hours.

Customers will benefit.
After this change, customers will not have to wait long to get money. The bank will have to deposit the money in the customer's account within a maximum of 1 hour after settlement. This will greatly reduce the time taken for check clearing, and your money will be available quickly.

Preparation to create a framework for the use of AI
RBI has also presented a report on creating a framework for the safe and responsible use of Artificial Intelligence (AI) in the financial sector. It has given 26 suggestions under 7 formulas and 6 strategic pillars regarding the use of AI, so that it is used in a safe and effective manner.

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