Under a major change in the Indian banking system, the Reserve Bank of India (RBI) has implemented a new fast and modern check clearance system since 4 October 2025. Due to this change, now after depositing the check, the money accounts will be credited in hours, whereas earlier it used to take a day or two. This new feature will give customers the experience of fast and safe payment.
The current system is based on the check clearance batching system, where checks were processed in a scheduled time. The new system will work on “Connection Clearing”, where images and data of checks submitted from 10 am to 4 pm will be immediately scanned and sent to Clearing House. The clearing house will send them to the draw bank accordingly and the bank will have to confirm the check by 7 pm. If the bank does not respond on time, the check will be accepted automatically.
This change will be applicable in two stages. The first phase will be from 4 October 2025 to 2 January 2026, where banks will get time for confirmation till 7 pm. In the second phase, i.e. from 3 January 2026, banks will get only 3 hours to confirm the check, which will make the clearance even faster.
The Reserve Bank has also made a “positive pay system” compulsory for large -price checks, in which customers tell the important details of the check in advance. This will reduce the possibility of fraud and only the correct checks will be cleared.
This change will not only benefit customers, but will also help businesses to manage cash flow better. The transparent and faster check clearance will also increase the efficiency of the banking sector.
Customers are advised to keep sufficient amount in their account and fill the check details correctly, so that the transaction can be delayed or avoided rejection. This new system will improve quality in India’s banking infrastructure and will also improve the experience of check payment along with digital payment.
This update will apply to the clearing grids of all banks in Delhi, Mumbai and Chennai, which cover the entire country. Therefore, customers are in any part, they will get the benefit of this facility.