How much time does it take to clear a cheque?

The CTS, or cheque truncation system, currently processes cheques via a batch method. This means that by the time the digital images and other relevant information required to clear and settle the cheque are processed and confirmed by the clearing house, and subsequently the drawee bank, the settlement timeline often extends to T+1 or T+2 days from the day the cheque is presented.

Yes. Starting October 4, 2025, RBI has directed the banks to shift the cheque processing method from batch mode to a continuous clearing and settlement on realisation method. For this, every bank will have 2 sessions: a presentation session (from 10 am to 4 pm), and a confirmation session (from 10 am to 7 pm). Every cheque presented during the day will have to be positively or negatively confirmed by the bank by 7 pm on that day.

From January 3, 2026, the banks will have to positively or negatively confirm regarding every cheque within 3 hours of its receipt. So, in case a bank received a cheque between 11 am and 12 noon, they will have to confirm whether the cheque has been honoured or dishonoured by 3 pm maximum.

In case the banks do not positively or negatively confirm regarding a cheque by 7 pm in phase 1, and within 3 hours of its presentation in phase 2, the cheque will be deemed to have been positively confirmed, and hence, will be included for settlement. In other words, if there’s no confirmation, the cheque will be auto-approved.

Under the new system, funds will be credited within 1 hour to the recipient’s account once the settlement and realisation processes are completed. This will reduce the waiting time for cheque clearances, and also, automatic approvals will prevent unnecessary delays.