RBI/2025-26/73
CO.DPSS.RLPD.No.S536/04-07-001/2025-2026
1.Introduction of Continuous Clearing and Settlement on Realisation in Cheque Truncation System
Please refer to the Statement on Developmental and Regulatory Policies dated August 8, 2024, announcing the transition of Cheque Truncation System (CTS) from the current approach of batch processing to continuous clearing with settlement on realisation.
2. It has been decided to transition CTS to continuous clearing and settlement on realisation in two phases. Phase 1 shall be implemented on October 4, 2025 and Phase 2 on January 3, 2026. The modalities for the same are given in Annex.
3. All banks are advised to make their customers adequately aware of the changes in the cheque clearing process.
4. Banks are also advised to be in readiness to participate in continuous clearing in CTS on the above dates.
5. This directive is issued under Section 10 (2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
Yours faithfully,
(Saurabh Nath)
Chief General Manager
Annex
Modalities for Continuous Clearing with Settlement On-realisation in CTS
1. Single presentation session with continuous delivery:
There shall be a single presentation session from 10:00 AM to 4:00 PM.
Cheques received by the branches shall be scanned and sent to the clearing house by the banks immediately and continuously during the presentation session.
2. Continuous inward processing and confirmation by banks:
The confirmation session shall start at 10:00 AM and close at 7:00 PM.
For every cheque presented, the drawee bank shall generate either positive confirmation (for honoured cheques) or negative confirmation (for dishonoured cheques).
Each cheque will contain the ‘Item Expiry Time’ which indicates the latest time by which confirmation for the presented instrument needs to be provided by the drawee bank.
Original source: NOTIFICATIONS FROM RBI
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