From October 4, 2025, cheques in India will clear much faster — almost in real time.
Instead of waiting 1–2 days for funds to reflect, money will now be credited to accounts within just a few hours.
This change comes as the Reserve Bank of India (RBI) shifts from the old batch-based model to hourly settlements, making banking quicker, smoother, and more reliable.
How the New Cheque Clearing System Works
Here’s what you can expect under the new process:
Cheques deposited between 10 a.m. and 4 p.m. will be scanned instantly and sent for clearing.
Settlements between banks will happen every hour from 11 a.m. onwards.
The paying bank has to confirm the payment by 7 p.m.. If it doesn’t, the cheque will be automatically approved — ensuring customers aren’t kept waiting.
In short, money from cheques will now move much faster, making the system almost as seamless as digital payments.
Why This Matters for You and Businesses
Faster access to funds: Money will hit your account in hours, not days.
Improved cash flow: Businesses get quicker payments, boosting liquidity.
Nationwide uniformity: Clearing speed will be the same across India.
Greater transparency: Customers can track cheque clearance in real time.
The Journey of Cheque Clearing in India
Pre-1980s: Manual processes meant waiting up to a week.
MICR & CTS systems: Brought it down to 1–3 days.
T+1 model: Reduced nationwide clearance to 1 day.
Now: Continuous clearing will settle most cheques within hours.
Phased Rollout Plan
Phase 1 (Oct 4, 2025 – Jan 2, 2026): Banks must confirm by 7 p.m.
Phase 2 (From Jan 3, 2026): The response window shrinks to just three hours.
The system will cover all bank branches under RBI’s three grids — Delhi, Mumbai, and Chennai.
A trial run on October 3 will ensure a smooth nationwide rollout.
This upgrade marks a transformative shift in India’s payments system, putting cheques on par with the convenience of digital banking.
