RBI Cheque Rules: The Reserve Bank of India has postponed the implementation of Phase 2 of the Continuous Clearing and Settlement (CCS) framework under the Check Truncation System (CTS). This phase was originally scheduled to be implemented on January 3, 2026, but a new date will be announced separately. The RBI has clarified that the current system, Phase 1, will continue as normal until further orders. With the postponement of Phase 2, the strict timelines for check clearing will also no longer be implemented.
However, this move by the RBI is considered important in making the system more smooth and risk-free.What changed in Phase 1The first phase of the CCS framework under CTS was implemented from October 4, 2025. It eliminated the traditional batch system and introduced a single, continuous presentation window throughout the day. Previously, checks were cleared in batches at fixed times, but now, as soon as a check is received by a bank, its scanned image and MICR data are sent directly to the clearing house.
The drawee bank electronically verifies the check and sends an approval or rejection. If no response is received from the bank by the end of the confirmation window, the check is automatically approved and settled.Under Phase 1, check presentation times are set from 9:00 AM to 3:00 PM. The window for banks to send confirmations or rejections is open from 9:00 AM to 7:00 PM. The clearing and settlement process is completed within this timeframe.
What was going to happen in Phase 2?
The most significant change proposed in Phase 2 was that the drawee bank would be required to approve or reject a check within three hours of receiving the check image. If no response was received within three hours, the check would be considered automatically approved and settled. This was intended to provide faster access to funds to customers.
What does postponement mean?
The postponement of Phase 2 means that the strict 3-hour deadline will no longer be imposed on banks. Check clearing will continue under the same rules as Phase 1. However, the overarching goal of CTS remains the same: eliminating physical check movement and creating a faster and safer clearing system using digital images and electronic data. The current check clearing structure will remain unchanged until further orders from the RBI.
