Starting October 4, private sector giants HDFC Bank and ICICI Bank will roll out same-day cheque clearance, following the Reserve Bank of India’s (RBI) new settlement framework. The initiative is expected to make cheque-based transactions faster, smoother, and more secure for customers.
Until now, cheques deposited through ATMs or drop boxes under the Cheque Truncation System (CTS) could take up to two working days to clear, as scanned images were transmitted to the drawee bank. Under the new framework, cheques deposited on or after October 4 will be cleared within a few hours on the same day.
Customer Guidelines
To avoid delays and ensure seamless clearance, banks are advising customers to:
- Fill cheque details carefully and correctly.
- Maintain sufficient balance to prevent cheque bounce.
- Avoid overwriting and ensure signatures match bank records.
Positive Pay System (PPS)
For enhanced security, customers are urged to use the Positive Pay System (PPS). This involves pre-submission of cheque details—account number, cheque number, date, amount, and beneficiary name—at least 24 working hours in advance for cheques above ₹50,000.
- Banks cross-verify these details during clearance.
- If matched, the cheque is processed; if mismatched, it is rejected and requires resubmission.
- Cheque details must be emailed to designated bank addresses, with an acknowledgment sent upon receipt.
The RBI has made Positive Pay mandatory for cheques above ₹5 lakh, while strongly recommending it for amounts above ₹50,000. Cheques validated under PPS will also fall under the RBI’s dispute resolution framework, offering additional protection to customers.
Implementation Timeline
This system is part of RBI’s phased settlement plan:
- Phase 1: Launches October 4, 2025.
- Phase 2: Expands on January 3, 2026.
For customers, the key takeaway is clear: double-check cheque details, maintain balance, and adopt Positive Pay for a secure and hassle-free banking experience.