RBI’s new cheque rule from tomorrow: Banks must clear within 24 hours

New Delhi (The Uttam Hindu): According to new guidelines from the Reserve Bank of India (RBI), starting October 4th, all banks will be required to clear checks within a single day. This will make check payments faster and easier. Currently, checks take one to two days to clear. Several banks, including HDFC Bank and ICICI Bank, have informed their customers that checks will be cleared within a single day starting October 4th.

Under the new system, checks deposited starting October 4th will be cleared on the same day within a few hours. Both banks have urged customers to maintain sufficient balance to avoid check bouncing and to fill in all check details correctly to avoid delays or rejections. The RBI stated that the new system will be implemented in two phases. The first phase will be effective from October 4th, 2025, to January 3rd, 2026, while the second phase will be effective from January 3rd.

The RBI, detailing how the new system will work, said it will involve a single presentation session, where checks must be presented between 10 a.m. and 4 p.m. The receiving bank will then scan the check and send it to the clearing house. The clearing house will then send an image of the check to the paying bank.

Following this, a confirmation session will be held from 10:00 AM to 7:00 PM. The paying bank will be required to provide a positive or negative confirmation on the check. The important thing here is that each check will have an "item expiration time" by which confirmation must be submitted.

Additionally, banks have urged customers to use the Positive Pay system to enhance security, which requires submitting key check details in advance for verification. Account holders must provide the bank with the account number, check number, date, amount, and beneficiary name at least 24 working hours before depositing checks exceeding ₹50,000.

Banks will verify these details when the check is presented. If the information matches, the check will be cleared; otherwise, the request will be rejected and the check issuer will have to resubmit the details.