RBI New Rule: The country’s largest bank, the RBI, has announced several big changes in the Check Truncation System CTS on Wednesday this week. This will speed up the process of check clearance and settlement of account holders. Through this new system, from October 4, 2025, check processing will now change from a batch system to a continuous clearing and settlement system. This change will be done by the RBI in two phases.
Let us tell you that, as a first phase, after receiving the check, the banks will have to approve it by 7 pm on the same day. If not approved, the check will be accepted for settlement. At the same time, after the second phase, the approval time will be reduced to just 3 hours.
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How will the new system work?
- Banks will continue to scan the check from 10 am to 4 pm and send it to the clearing house.
- The clearing house will immediately send a scanned copy of the cheque to the bank from which the cheque has been issued.
- The settlement process will run every hour, which will continue till evening.
- Money can be credited to the customer’s account within an hour of the cheque settlement – if all the necessary checks have been completed.
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RBI’s instruction
RBI has asked all banks to be ready for this new system and give timely information to the customers. The purpose of this change is to make cheque transactions more effective, reduce delays, and give a better experience to the customers.
Big decision on foreign rupees too
RBI has also decided that now the excess amount of foreign currency (rupees) can be invested in government bonds. This will increase liquidity (cash) in the country’s financial system and promote investment.