The Reserve Bank of India (RBI) has made a big and revolutionary change in the rules of check clearing. Now you will not have to wait for 2-3 days for the check payment to clear. This new system, which will come into effect from October 4, 2025, will completely change your banking experience, and the transaction of money will become faster and easier than ever.
What is RBI’s new Continuous system
Till now, the work of check clearing used to run on the ‘Batch Processing’ system. This means that the banks used to send all the checks together at a fixed time, and then they were processed. Now this old system is being replaced by the ‘Continuous Clearing and Settlement on Realization’ model. This simply means that the checks will be cleared continuously throughout the day, which will save time, and the work will be done faster.
Know how this new process will work
Under the new rule, banks will continuously scan the checks from 10 am to 4 pm and send them to the clearing house. The clearing house will immediately send the photo of the check to the bank on which it has been issued. Now that the bank will have to tell within a fixed time on the same day whether the check will be passed or bounced.
Customers will get these great benefits
This new system has brought many benefits for the customers:
Now, clearing and settlement will happen every hour, so that money will come to your account very quickly.
As soon as the check is passed, the bank will have to give the money to the customer within an hour (after necessary investigation).
With this change, traders, employees, and common customers will all get great relief by getting timely payment.
RBI’s purpose
RBI’s main objective in bringing this new system is to make transactions faster and convenient. Its purpose is to eliminate the delay in bank settlement and improve the customer experience. Apart from this, the RBI has also said that banks will be able to invest the excess amount kept in their foreign currency in government bonds. This step will increase liquidity in the market. This new system will prove beneficial for both customers and banks in terms of time and service.