The RBI has confirmed that its same-day cheque clearance framework from Saturday, October 4, 2025, to fast-track transactions through cheque systems.
Banks across the country will be required to clear cheques within three hours, starting from January 2026 as part of the second phase of RBI’s initiative to enhance payment efficiency. The move aims to reduce settlement times and improve operational convenience for businesses that still rely on cheques. Despite the widespread shift to digital payment systems like UPI, NEFT, RTGS, and IMPS.
The RBI introduced this framework in 2024, proposing that banks process cheque settlements on the same day to speed up payments. The implementation was divided into two phases.
The first phase, launched on October 3, required banks to send scanned copies of cheques to clearing houses between 10 a.m. and 4 p.m., and confirm their clearance or dishonour by 7 p.m. the same day. Though a few technical glitches were reported, the system largely functioned without major issues.
The second phase, commencing on January 3, 2026, will make it mandatory for banks to fully process cheques within three hours. Notably, the RBI has clarified that if a bank fails to confirm within the stipulated time, the cheque will be automatically deemed ‘approved’.
While cheque usage has declined significantly since the rise of digital transactions, cheques remain relevant for millions of individuals and enterprises. Reports indicate that in 2012, Indian banks handled an average of 50 lakh cheques per day. Even today, crores of businesses continue to prefer cheques for certain transactions, and the RBI’s new framework is expected to provide a significant boost to such users by ensuring faster, more efficient settlements.
