Bank Cheque Update- Cheque will be cleared in minutes from October 4, Big news for everyone

Bank Cheque Update- Big news for bank account holders. ICICI Bank has announced that starting October 4, 2025, checks deposited will be cleared the same day. This decision was taken in accordance with new guidelines issued by the Reserve Bank of India (RBI), which aim to ensure faster check clearing and settlement.

The bank informed its customers via email that same-day clearance requires customers to deposit their checks before the designated branch’s cut-off time. ICICI Bank states that this move will ensure faster access to funds, greater convenience, and reduce delays. The bank advises customers to issue checks correctly and maintain a sufficient balance in their accounts to avoid any problems with clearing. It also stated that, in accordance with RBI guidelines, customers should use the “Positive Pay” feature to prevent fraudulent check transactions.

What is Positive Pay?

Positive Pay is a security process where customers electronically send check information to their bank so the bank can verify it before clearing it. This helps prevent fraudulent transactions.

The main details of the cheque that need to be given are-

– Account number

– Cheque number

– Name of the beneficiary/payee

– Amount of the check

– Date of check

Why is positive pay important?

– Recommended: For cheques above Rs 50,000.

– Mandatory: For cheques above Rs 5,00,000.

– If a check above Rs 5 lakh is deposited without Positive Pay, the bank will return it. Only checks with Positive Pay confirmation are eligible for protection under the RBI’s dispute resolution system.

Important rules for check clearing

– Amount should be given in words and figures, no change.

– The date of the cheque must be valid.

– There should not be any modification/editing in the payee name, amount or date.

– The signature on the cheque should match the specimen signature registered with the bank.

In August 2025, the RBI announced that check clearing would shift from a batch system to a continuous system. This will be implemented in two phases, Phase 1: October 4, 2025 and Phase 2: January 3, 2026. Banks will scan and immediately transmit checks to the clearinghouse during a single presentation session from 10:00 a.m. to 4:00 p.m. The clearinghouse will continuously provide check images to the drawee bank.

How are cheques cleared currently?

Banks now use the Check Truncation System (CTS). In this system, paper checks are not physically transferred; instead, electronic images and check information are sent to the drawee bank the same day. The entire check return and settlement cycle is completed the next day. This ensures the customer receives funds within 1–2 days.