Banks to clear cheques on same day from tomorrow under RBI’s new rules

New Delhi: Cheque clearance is expected to become faster as private banks, including HDFC Bank and ICICI Bank, implement the Reserve Bank of India’s (RBI) new cheque settlement framework from October 4. Under this system, cheques deposited will be cleared within a few hours on the same day instead of the current 1–2 working days.

Key updates

• Effective date: October 4, 2025
• Applies to: All private banks adopting RBI’s continuous settlement system
• Impact: Faster, safer, and more transparent cheque processing

Positive Pay System mandatory for large cheques
To strengthen security, banks are urging customers to use the Positive Pay System, especially for cheques above ₹50,000. Account holders must share cheque details such as:

• Account number
• Cheque number
• Date
• Amount
• Beneficiary name

These details should be submitted at least 24 working hours before deposit. Cheques above ₹5 lakh require Positive Pay mandatorily as per RBI rules, while it is highly recommended for amounts above ₹50,000.

If the details provided match at the time of cheque presentation, clearance will proceed smoothly. If not, the cheque will be rejected, and the drawer must resubmit accurate details.

How to submit cheque details
Customers need to email cheque details to their bank’s designated regional email address. Banks will send an acknowledgement message confirming receipt before processing begins.

What changes for customers
Currently, banks use the Cheque Truncation System (CTS), which sends electronic images of cheques to the drawee bank. While this eliminates physical movement of cheques, settlement usually takes two working days. From October 4, cheques will be cleared on the same day, greatly improving fund availability.

The RBI’s new framework will roll out in two phases:

• Phase 1: Starts October 4, 2025
• Phase 2: Begins January 3, 2026

Checklist to avoid cheque rejection

• Customers are advised to ensure:
• Amount in words and figures matches
• Date is valid and correctly written
• No overwriting in payee name or amount
• Signature matches bank records

With same-day cheque clearance, customers of HDFC Bank, ICICI Bank, and other private banks will benefit from faster access to funds and enhanced payment security. Using the Positive Pay System and ensuring error-free cheque details will be key to smooth transactions under the new RBI guidelines.