GG News Bureau
Mumbai, 3rd Oct: Private banks, including HDFC Bank and ICICI Bank, have announced that they will implement same-day cheque clearance starting October 4, 2025, in line with the Reserve Bank of India’s (RBI) updated settlement framework aimed at ensuring quicker and more secure transactions.
Under the new system, cheques deposited on or after October 4 will be cleared within a few hours the same day, significantly reducing settlement time from the current two working days under the Cheque Truncation System (CTS).
Both banks have urged customers to maintain adequate balances to prevent cheque bounces and to ensure that all cheque details are accurately filled in order to avoid rejection or delays.
As part of enhanced security measures, customers have been encouraged to use the Positive Pay System, which requires prior submission of cheque details — including account number, cheque number, date, amount, and beneficiary name — at least 24 working hours before deposit for cheques above ₹50,000. The RBI has already made Positive Pay mandatory for cheques above ₹5 lakh.
The banks clarified that cheque details can be submitted via email to designated regional addresses, with customers receiving an acknowledgement message upon receipt. If details match during verification, clearance will proceed. If not, the cheque will be rejected and resubmission will be required.
The RBI has announced that Phase 1 of continuous clearing and settlement will begin on October 4, 2025, while Phase 2 is scheduled to start on January 3, 2026.
Customers have also been advised to ensure that the amount in words and figures match, the date is valid, and there is no overwriting in the payee’s name or amount. The drawer’s signature must match bank records to avoid cheque rejection.
This move is expected to streamline banking operations, enhance payment security, and improve customer convenience across the system.
