RBI Defers Phase 2 Of Faster Cheque Clearance Framework From Jan 3, 2026

(MENAFN- KNN India) New Delhi, Dec 26 (KNN) The Reserve Bank of India (RBI) has deferred the implementation of Phase 2 of its faster cheque clearance framework, which was scheduled to come into effect from January 3, 2026.

Under the proposed phase, banks would have been required to approve or reject cheques within three hours of receiving their digital images.

In a circular issued on December 24, the RBI said the second phase of the Continuous Clearing and Settlement (CCS) framework has been postponed until further notice.

Phase 1 of the system, which was rolled out earlier this year, will continue to operate unchanged.

Revised Processing Timings

Alongside the deferment, the RBI has revised cheque processing hours. The cheque presentation window will now remain open from 9 am to 3 pm, while banks will be able to confirm or reject cheques between 9 am and 7 pm.

Phase 1: Shift to Continuous Clearing

The CCS framework was introduced under the Cheque Truncation System (CTS) to accelerate cheque clearing by moving away from the traditional batch-based process. Under CTS, physical movement of cheques is eliminated, with settlements based on digital images and electronic data.

From October 4, 2025, Phase 1 introduced a single, continuous presentation window during the day.

Banks scan cheques and transmit images and MICR data to the clearing house as they are received, rather than waiting for fixed clearing cycles. Once the drawee bank receives the cheque image, it electronically approves or rejects the transaction. If no response is sent by the end of the confirmation window, the cheque is deemed approved and settled.

Phase 2: Tighter Timelines, Now Deferred

Phase 2 was designed to further compress clearance timelines by imposing a three-hour deadline on banks to approve or reject cheques after receiving their images. Failure to respond within this period would have led to automatic approval and settlement, accelerating fund availability for customers.

Status Until Further Notice

With the postponement of Phase 2, cheque clearing will continue under the existing Phase 1 framework without the stricter time-bound requirement.

The RBI said a revised implementation date for Phase 2 will be announced separately.

(KNN Bureau)

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