RBI Directs Banks to Process Cheques Within Hours from October 4

Starting October 4, 2025, the RBI will implement a faster cheque clearing system, reducing the current T+1 cycle of up to two working days to just a few hours. Under the new system, cheques will be scanned, processed, and settled in real-time during business hours instead of batch processing. In Phase 1 (Oct 4, 2025 – Jan 2, 2026), banks must approve or reject cheques by 7:00 PM, otherwise they are auto-approved. From Phase 2 (Jan 3, 2026), cheques must be confirmed within three hours of receipt, or they will be cleared automatically, enhancing customer convenience and reducing settlement risk.