The Reserve Bank of India (RBI) on August 13, 2025, issued a circular announcing the phased introduction of continuous clearing and settlement on realisation in the Cheque Truncation System (CTS). This move follows an announcement made in the Statement on Developmental and Regulatory Policies dated August 8, 2024, to modernise the cheque clearing process from the current batch-based system.
The transition will be implemented in two phases. Phase 1 is scheduled to begin on October 4, 2025, with Phase 2 following on January 3, 2026. This shift to continuous clearing aims to improve the efficiency and speed of cheque processing and settlement.
The RBI has directed all banks to prepare for participation in the new system by the specified dates. Additionally, banks are advised to inform their customers about the upcoming changes to ensure they are aware of the new cheque clearing process.
[Notification No. RBI/2025-26/73]
