The Reserve Bank of India (RBI) is going to introduce new rules for cheque clearance. Currently, it takes T+1 or T+2 days for a cheque to be cleared. From October 2025, this process will be completed in just one day. From January 2026, it will take only 3 hours to know whether a cheque is cleared or not.
In this article, we will explain this new rule in detail. We will also talk about the benefits of using cheques, who uses them the most, and when and where it is better to avoid using cheques.
How Long It Takes to Get Money from a Cheque
Right now in India, it takes 1 or 2 days to get money from a cheque. This is called the Check Truncation System (CTS). From January 3, 2026, banks will tell you if the cheque is cleared within 3 hours. For example, if you give a cheque at 11 am, the bank must tell you by 2 pm. If the bank does not tell, the cheque will be approved automatically and the money will go to your account. After the cheque is cleared, the money will come within 1 hour. This will make the process fast and easy.
Who Uses Cheques
Even though people use UPI, net banking, and wallets, many people still use cheques in India. Shops and companies use cheques for big payments. The government uses cheques for pensions, refunds, and grants. Older people who do not use phones also like cheques. In villages or places with no internet, cheques are common. Cheques are safer than cash, give a record of payment, and can be used to pay later with post-dated cheques. But cheques are not good for fast payments, online payments, or small daily payments. For these, digital payment is better.