Rules Change: The Reserve Bank of India (RBI) will implement new rules for check clearance from October 4, 2025, in which the money will come into the account within a few hours of depositing the check. On-realization-settlement and continuous clearance will be implemented by replacing the existing T plus 1 system. This will make payments faster, increase security and save time. This scheme, which will be implemented in two phases, will give the benefit of better service to the customers and digital upgrade to the banks, which will bring a big change in the Indian banking sector.

Rules Change: There is big news for those who withdraw and deposit money through check in the bank. That is, now the clearance will be done within a few hours of depositing the check in the bank. The Reserve Bank of India (RBI) has taken a big step to make the check clearance process faster and safer. Under this new rule, which will come into effect from October 4, 2025, now the money will come into the account within a few hours of depositing the check.

Current system and need for change

Currently, the cycle of check clearance under the Check Truncation System (CTS) is T+1 (ie after one working day). It takes an average of two days to process a check. The need to send checks physically has ended, but it takes more time due to batch processing. Now RBI is going to change it to continuous clearing, which will reduce the time significantly.

What is On-Realization-Settlement

Under the new system, the check will be scanned and immediately sent to the paying bank in electronic form. The bank will have to give positive or negative confirmation on every check. This will enable check clearance within hours and customers will get faster service.

The scheme will be implemented in two phases

The first phase will be in force from 4 October 2025 to 2 January 2026. The time for presenting the check will be from 10:00 am to 4:00 pm. Banks will confirm all checks by 7:00 pm. If confirmation is not given, the check will be considered accepted and included in the settlement. Its second phase will come into effect from January 3, 2026. The check clearance time will be made T plus 3 hours. Confirmation of the check deposited between 10:00 am to 11:00 am will have to be given by 2:00 pm, otherwise it will be considered accepted.

What will be the benefit to the customer?

Fast payment: Now the money will come in the account within a few hours of depositing the check.

Improvement in security: Electronic image and data transfer will reduce the possibility of fraud.

Time saving: Where it used to take 1-2 days earlier, now it will take only 3-4 hours.

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Responsibility of banks

RBI has directed the banks to give complete information about this change to the customers and upgrade the system on time. Also, complete the preparations to join CTS continuous clearance before the scheduled dates. This move of RBI is a big change towards digital and fast payment system in the Indian banking sector. This will not only improve the customer experience but will also increase the efficiency of financial transactions manifold.

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