In a significant move to enhance banking efficiency, the Reserve Bank of India (RBI) has mandated that starting October 4, 2025, all banks in India must clear cheques on the same day of presentation. This reform aims to expedite cheque processing, reduce settlement times, and improve liquidity for individuals and businesses alike.
Key Highlights of the New System
Implementation Date: October 4, 2025
Clearing Time: Cheques presented between 10:00 AM and 4:00 PM will be processed within a few hours.
Confirmation Deadline: Drawee banks must confirm the status of cheques (honoured or dishonoured) by 7:00 PM the same day. If no confirmation is received, the cheque will be deemed honoured and settled automatically.
Positive Pay System: Banks are encouraged to use the Positive Pay system, where customers pre-submit key cheque details (like cheque number, date, amount, and beneficiary name) to enhance security and reduce fraud risks.
Two-Phase Rollout:
Phase 1: October 4, 2025 – January 2, 2026
Phase 2: January 3, 2026 – onwards
Banks Adopting Same-Day Clearance
Several major banks have announced their participation in the same-day cheque clearance system:
HDFC Bank: Same-day clearance for cheques presented between 10:00 AM and 4:00 PM
ICICI Bank: Same-day clearance with Positive Pay mandatory for cheques above ₹5 lakh
Other Banks: Many public and private sector banks are expected to follow suit, aligning with RBI's guidelines
How to Ensure Your Cheques Are Cleared on the Same Day
To take full advantage of the new system:
Deposit During Business Hours: Ensure your cheque is deposited between 10:00 AM and 4:00 PM.
Use Positive Pay: Pre-submit cheque details via your bank's internet banking or mobile app.
Maintain Sufficient Funds: Ensure your account has enough balance to cover the cheque amount.
Correct Details: Fill in all cheque details accurately to avoid rejections.
Check Bank Policies: Different banks may have specific requirements; consult your bank for precise guidelines.
FAQs
Q1: Why is RBI implementing same-day cheque clearance?
A: To enhance banking efficiency, reduce settlement times, and improve liquidity for customers.
Q2: Will all cheques be cleared on the same day?
A: Cheques presented between 10:00 AM and 4:00 PM will be processed the same day.
Q3: What is the Positive Pay system?
A: A security feature where customers pre-submit key cheque details to the bank to verify authenticity and reduce fraud.
Q4: Are there any exceptions to this rule?
A: Currently, the rule applies to all cheques presented during the specified hours. However, specific bank policies may vary.
Q5: How can I ensure my cheque is processed smoothly?
A: Deposit your cheque during business hours, use Positive Pay, maintain sufficient funds, and ensure all details are accurate.
Published on : 3rd October
Published by : SMITA
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