RBI new guidelines: Starting October 4th, the check clearing process for banking customers will undergo a major change. According to the Reserve Bank of India’s (RBI) new guidelines, all banks must ensure that checks are cleared the same day they are deposited. This means that making check payments will become faster and easier. Currently, checks used to take one to two days to clear, but with the new system, this process will be completed in just a few hours.
Checks will be cleared within a few hours
Under the new system, checks deposited with banks starting October 4th will be cleared the same day. Banks have urged customers to maintain sufficient balances in their accounts and enter correct details on checks to avoid check bounces. HDFC Bank, ICICI Bank, and other major banks have informed their customers that the check clearing process will now be faster, with funds transferred directly to the account.
The new system will be implemented in two phases.
The RBI has announced the implementation of the new process in two phases. The first phase will be implemented from October 4, 2025, to January 3, 2026. The second phase will begin after January 3, 2026. Under this, a ‘single presentation session’ has been introduced for check clearing. Checks will be presented between 10:00 AM and 4:00 PM.
The receiving bank must 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. A confirmation session will then take place from 10:00 AM to 7:00 PM, during which the paying bank must provide a positive or negative confirmation of the check. Each check will have an item expiration time, by which time confirmation must be provided.
It is necessary to use the positive pay system.
Banks have advised customers to use the Positive Pay system to enhance security. Under this system, depositing high-value checks (₹50,000 or more) requires the bank to provide the account number, check number, date, amount, and beneficiary name at least 24 working hours in advance.
The bank will verify these details at the time of depositing the check. If the information is found to be correct, the check will be cleared. Otherwise, the bank will reject the request and the check issuer will be required to submit the details again.
