New Delhi: The Reserve Bank of India has been implementing several major changes to simplify and ease the banking system. It used to take several days to withdraw money by check. Banks often take two to three days to clear checks, but this will no longer be the case. A major change is set to take place today, October 4th.
The RBI has now taken a major decision to implement a fast check clearance system from October 4th. With the new system, checks will be deposited the same day. People will no longer have to wait as before. The RBI’s new system could prove to be a boon for people. Checks will be cleared within a day. Find out how long check clearance will take below.
Checks will be cleared within a day.
Previously, check clearance used to take a few days, but with the new system, this will be a relief. Now, if you deposit checks between 10 am and 4 pm, their photo and data will be scanned and sent to the clearing house. The check will need to be confirmed by 7 pm. If the bank does not respond in time, the check will be considered automatically cleared.
Two phases have been created. In phase one, from October 2025 to January 2, 2026, the bank will have until 7 p.m. to provide information. In phase two, starting January 3, 2026, the bank will have a total of three hours to confirm the check.
If you deposit a check at a bank at 10 a.m., it must be cleared by 2 p.m. This excellent feature will currently be implemented in major cities. It will gradually expand to other parts of the country. It will be implemented on the clearing grids of Delhi, Mumbai, and Chennai.
Frauds will be reduced..d
The Reserve Bank of India has mandated the Positive Pay system for large checks. This allows customers to provide key check details to the bank in advance. This will significantly reduce the likelihood of fraud. Bad checks and automatic clearing will not occur.
Most importantly, this RBI change will greatly benefit both consumers and businesses. Customers will enjoy faster payments and reduced transaction uncertainty. Businesses will also be able to better manage their cash flow.