RBI check clearance rules
The Reserve Bank of India has taken an important decision regarding people making payments through cheques. RBI has currently postponed the introduction of the new system, under which banks had to pass or reject the check within just three hours of receiving it. This system was to come into effect from January 3, 2026, but now it has been put on hold until further notice.
What was the new plan of RBI?
RBI wants to speed up and modernize the check clearance process in the country. For this purpose, it had announced Continuous Clearing and Settlement i.e. CCS Framework. Its second phase i.e. Phase 2 was considered to be the most important, because in this the check clearance time would be reduced significantly.
Under Phase 2, as soon as a bank received the digital image of the cheque, it would have only three hours to accept or reject the cheque. If the bank does not respond within this stipulated time, the check is automatically considered cleared.
Why did RBI suddenly apply brakes?
In the circular issued on December 24, RBI said that Phase 2 of the CCS framework has been postponed for the time being. Although no single reason behind this has been publicly stated, it is believed that this decision has been taken keeping in view the technical preparedness, system upgrade and operational challenges of the banks. RBI has made it clear that until the new date is announced, the existing system i.e. Phase 1 will continue as before.
How is the check clearance going on now?
Phase 1 was implemented earlier this year. Under this, physical movement of checks has been eliminated through Check Truncation System i.e. CTS. Now clearance is done through digital image and electronic data of the cheque, due to which the process has become faster than before.
Now banks do not wait for the scheduled batch during the day, as soon as the check is received, its image is sent to the clearing house. The drawee bank takes a decision after looking at that image and sends approval or rejection electronically.
What changed in check processing time?
RBI has also changed the working hours of check processing. Now the check deposit window will be open from 9 am to 3 pm. At the same time, banks can confirm or reject the check from 9 am to 7 pm. This increases the chances of customers getting their checks cleared on the same day.
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Impact of postponement of Phase 2 on common people
Postponement of Phase 2 means that at present the strict time limit of three hours for check clearance will not be applicable. This means it may take some time for the check to pass. However, the current system is faster than ever, so customers will not face much trouble.