Hyderabad: The Reserve Bank of India (RBI) has introduced a major technological shift in the banking system by launching its new cheque clearance framework from October 4. The new model, called Continuous Clearing and Settlement, aims to make cheque transactions almost real-time.
Earlier, clearing took up to two days as banks followed a batch-based settlement system. Now, cheques will be scanned, verified, and cleared within hours during the bank’s working hours.
Security features and customer instructions
Banks including HDFC and ICICI have informed customers to maintain adequate account balances to avoid bounced cheques. They have also highlighted the importance of filling cheque details correctly to prevent rejections.
The Positive Pay System will remain mandatory for cheques exceeding ₹50,000. Customers must pre-share essential cheque details at least 24 hours before depositing. The bank’s system cross-checks this information before approval, reducing the risk of fraud and misrepresentation.
This reform reflects the RBI’s continued efforts to new cheque clearance, digitize traditional banking operations while ensuring speed, accuracy, and enhanced security for millions of cheque users nationwide.
