Swipe, Scan, Settled: RBI’s Cheque Revolution Starts October 4

Starting October 4, 2025, the Reserve Bank of India (RBI) is set to transform cheque processing across the country, promising near real-time settlements and eliminating the traditional two-day wait.

What’s Changing

1. Cheque Truncation System (CTS) will shift from batch-style to continuous clearing  
2. Cheques deposited between 10 am and 4 pm will be scanned and sent instantly to the central clearing house  
3. Drawee banks must confirm cheque status by 7 pm. If no response is received, the cheque is deemed approved  

Hourly Settlements for Speed

- From 11 am to 7 pm, hourly settlements will occur based on confirmed or deemed-approved cheques  
- Banks must credit customer accounts within one hour of successful settlement  

Positive Pay System for Added Security

- HDFC Bank has implemented Positive Pay for cheques of Rs 50,000 and above  
- Customers must pre-submit cheque details via email or net banking at least 24 hours before presentation  
- Regional email IDs are designated for different zones to streamline verification  

Why It Matters

- Individuals and businesses will benefit from faster access to funds  
- Improved cash flow can support urgent purchases, payroll, and operational needs  
- The system reduces fraud risk and enhances transparency  

Transition Timeline

- Phase 1: October 4, 2025 to January 2, 2026 with 7 pm confirmation deadline  
- Phase 2: From January 3, 2026, stricter three-hour confirmation windows will apply  

Sources: The Week, India Today, MSN, TaxGuru