Same Day Cheque Clearing: From this day, cheques will be cleared in 3 hours, big relief to customers with RBI’s new system

Same-Day Cheque Clearing: The Reserve Bank is implementing Cheque clearance in two phases. The first phase began on October 4th, with Cheque being cleared within a single day.

Same-Day Cheque Clearing: There’s great news for bank customers. According to new guidelines from the Reserve Bank of India (RBI), starting January 3, 2026, Cheque deposited over the counter will be cleared in just three hours.

The Reserve Bank of India is implementing Cheque clearance in two phases. The first phase, which began on October 4th, allows Cheque to be cleared within a single day. This means that Cheque deposited in the morning are cleared by evening. This move by the RBI aims to improve customer convenience by reducing clearing timeframes.

Now the rules are even stricter

From January 3, 2026, after a cheque is deposited, it will be sent to the Drawee Bank, i.e., the bank to which your cheque belongs or from whose account the money is to be deducted. The bank will have to respond within the stipulated timeframe. For example, if a person deposits a cheque between 11 am and 12 noon, the bank will have to inform them by 3 pm at the latest whether the cheque has passed or failed. For example, if the cheque has an incorrect date, signature, or account number, it will be rejected. If no response is received from the bank within the stipulated timeframe, the cheque will be considered passed and settled automatically.

What is the difference between the two stages?

Currently, under the first phase, checks are being sent to the clearinghouse continuously from 10:00 AM to 4:00 PM, starting October 4th. Banks are required to confirm Cheque have been passed or returned by 7:00 PM. In the second phase, the rules will become even stricter, requiring banks to confirm within three hours of deposit. For example, if a customer deposits a Cheque between 11:00 AM and 12:00 PM, the bank must notify the bank whether the Cheque has been passed or not by 3:00 PM. If the bank fails to provide timely information, the Cheque will be automatically considered passed and settled.

How is a cheque cleared?

  • Usually the cheque is deposited in the bank between 10:00 am to 4:00 pm.
  • After scanning it, the bank forwards it digitally to the clearing house.
  • Now the Drawee Bank or the Paying Bank has to pass or fail the cheque received from the Clearing House.
  • If the bank does not respond within the stipulated time, the cheque is considered valid and the process of its settlement begins.
  • The money is credited to the account within one hour of settlement.

The post Same Day Cheque Clearing: From this day, cheques will be cleared in 3 hours, big relief to customers with RBI’s new system first appeared on informalnewz.

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