RBI Revamps Cheque Clearing System for Faster, Safer Payments
The Reserve Bank of India (RBI) has revamped the cheque clearing system for enhanced security and faster processing. The new framework, set to roll out in phases starting October 4, 2025, introduces the mandatory Positive Pay system for high-value cheques and same-day clearance for all cheques.
Under the updated system, banks must validate cheques using the Positive Pay system for amounts exceeding Rs 5 lakh. This system is strongly recommended for cheques above Rs 50,000. Account holders must provide specific cheque details to their bank at least 24 working hours before depositing such cheques. These details include matching the amount in words and figures, a valid date, no overwriting in the payee's name or amount, and a matching signature. This ensures cheques are protected under the RBI's dispute resolution system.
The new settlement framework aims to clear cheques within a few hours on the same day of deposit. Phase 1 of continuous clearing and settlement will begin on October 4, 2025, with Phase 2 following on January 3, 2026. Banks across India, including ICICI Bank, will implement these changes. To prevent cheque bounces, customers are advised to maintain sufficient account balances and file cheque details accurately.
The RBI's updated cheque clearing system promises quicker and more secure payments. With the mandatory Positive Pay system and same-day clearance, banks and customers can expect improved efficiency and reduced risks. The new framework is set to begin in October 2025, marking a significant change in India's banking landscape.
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