The RBI said the cheques received by drawee banks between 10:00 AM and 11:00 AM will have to be confirmed positively or negatively by them by 2:00 PM, which is 3 hours from 11:00 AM.
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The Reserve Bank of India (RBI) has announced reforms to the Cheque Truncation System (CTS), stating that starting October 4, 2025, cheques will be cleared within hours instead of up to two working days, thereby transforming cheque processing into a real-time experience during business hours.
The RBI said the cheques received by drawee banks between 10:00 AM and 11:00 AM will have to be confirmed positively or negatively by them by 2:00 PM, which is 3 hours from 11:00 AM.
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In phase 1, which will be from 4 October 2025 to 2 January 2026, continuous scanning (10 AM–4 PM) will come into force, where drawee banks must confirm cheques by 7 PM, or else they will be auto-approved for settlement that night.
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In phase 2, from 3 January 2026, cheques need to be confirmed within 3 hours of receipt. Funds will be credited within 1 hour post-settlement.
According to the RBI, cheques for which the drawee bank does not provide confirmation in the prescribed 3 hours, shall be treated as deemed approved and included for settlement at 2:00 PM.
“It has been decided to transition CTS to continuous clearing and settlement on realisation in two phases. Phase 1 shall be implemented on October 4, 2025, and Phase 2 on January 3, 2026,” it said.
The RBI further said that for every cheque presented, the drawee bank shall generate either a positive confirmation (for honoured cheques) or a negative confirmation (for dishonoured cheques).
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