Bank check clearance
The Reserve Bank of India (RBI) has announced a major change in the country’s banking system. Now to clear the check, you will not have to wait for two days, but in a few hours the check will be transferred to the accounts. The purpose of this new system is to increase the speed of check clearing, reduce the risk and give customers a better experience.
Currently, it takes about T+1 or two working days to process the check under the check tankation system (CTS). But RBI is now removing this system from batch processing and leading to Settlement on Realization
How long will this new system be implemented?
Constant and real time disposal for check clearing will be effective from October 4, 2025. Under this new system, the checks received from customers by banks will be scanned and sent to the clearing house immediately. This process will be conducted in a single clearing session from 10 am to 4 pm.
New system will be implemented in two phases
This new system will be implemented in two stages. The first phase will be fully effective from 4 October 2025 to 2 January 2026 and the second phase from 3 January 2026. In the first phase, after giving the check, Arta Bank will have to confirm by 7 pm on the same day whether the check has been accepted or rejected. If the bank does not respond on time, the check will be accepted and disposed of based on it.
3 hours limit will be available in the second phase
In the second phase to implement from January 2026, the proof banks will have to confirm each check within just 3 hours. For example, if a check is presented at 10:30 am, the concerned bank will have to clarify its position by 1:30 pm. The check will be automatically accepted if the deadline is not confirmed.
Customers will get payment immediately
Under this new system, as soon as the clearing house will send information about the check and disposal information, the presenter bank will have to transfer the amount to the customer’s account. RBI has clarified that it will be mandatory to make this payment within an hour of clearance, provided there is no security risk.
Banks got strict instructions
RBI has directed all banks to inform their customers about this change at clear and timely. In addition, banks must ensure that they are fully prepared for the new CTS process before the scheduled dates.