RBI Update- Checks can be cleared within 3 hours from this date, know new rules

New Delhi: You may have noticed that many people transact with banks using checks. Clearing checks can take days, causing difficulties. But that won’t be the case anymore. Your checks will be cleared easily, without any hassle. The Reserve Bank of India has made a major change in this regard.

The RBI has established two stages of check clearance. The first stage has already been implemented. Checks deposited in the morning are cleared by evening. The second stage is going to be even faster. Most importantly, this stage will be implemented from January. Checks will be cleared within three hours. The amount will be credited to the account of the person in whose name the check is drawn.

Preparations to Discontinue Alerts

In addition, banks have requested permission from the RBI to change SMS alert rules. Banks want to eliminate the need to send SMS alerts for transactions less than ₹100. Furthermore, the Reserve Bank of India is going to make the check clearance process even faster. Starting January 3rd, checks will be cleared within three hours. However, account holders must be careful when submitting checks.

They must ensure sufficient funds are available in their accounts. Insufficient balance will result in a bounced check. Most importantly, the RBI has established two phases to reduce check clearance times. The first phase has already been implemented on October 4th. The second phase will be implemented on January 3rd, 2026.

The RBI has issued instructions to banks regarding this and is fully prepared for the next phase. Under the first phase, starting October 4th, banks will be continuously scanning checks between 10:00 AM and 4:00 PM and sending them to the clearing house.

Banks’ responsibilities will increase.

Following the Reserve Bank of India’s directive, banks have decided to begin preparations for the second phase. Separate bank staff will be assigned to scan and image checks deposited in each bank, sending them to the clearing house, and clearing checks received for payment.

Meanwhile, a team of two bank officials will be responsible for cheque payments, as the new process will increase responsibilities.