If you often deposit cheques into your savings account, there’s good news for you. The Reserve Bank of India (RBI) has announced a major change that will speed up cheque clearance.
Starting October 2025, the cheque clearing process will happen in real-time—which means the money will be credited to your account within a few hours instead of the usual 2–3 days.
What Is the New System?
The RBI has named this new system “Continuous Clearing and Settlement on Realization.” Under this system, when a cheque is deposited in the bank, it will be immediately scanned and sent to the clearing house.
The clearing will then happen in real-time, and the paying bank must verify the cheque without delay.
When Will It Start?
Phase 1 – From October 4, 2025
Cheques deposited between 10 AM and 4 PM will be processed on the same day.
Banks must update the status of the cheque by 7 PM.
If a bank fails to respond in time, the cheque will be considered automatically cleared and the money will be settled that day itself.
Phase 2 – From January 3, 2026
The system will become even faster.
Cheques must be cleared within 3 hours of deposit.
After successful clearance, the amount will be credited to the customer’s account within 1 hour.
How Will Customers Benefit?
This change will help customers get their money faster. You’ll no longer have to wait 2–3 days for your cheque to clear. This will be especially helpful for:
Small business owners
Traders
Individuals who depend on daily cash flow
Why This Is Good for Banks Too
This isn’t just good news for customers. Banks will also benefit:
It will reduce the risk involved in cheque settlements.
The banking system will become more efficient and reliable overall.
