RBI took a big decision, now your cheque will be cleared by the bank soon

The main goal is to improve the customer experience

The decision is aimed at increasing the efficiency of check clearance and reducing settlement risk for participants. The governor further said that the main objective of this decision is to improve customer experience. Das elaborated that it is proposed to change CTS from the current approach of batch processing to continuous clearance with on-realisation-settlement.

Guidelines will be issued soon

– The new system allows checks to be checked, presented and cleared continuously during business hours instead of the current batch processing method.

– Currently the Check Truncation System (CTS) operates with a clearing cycle of two days, known as T+1.

– The shift to continuous cheque clearing with on-realisation-settlement is designed to improve the efficiency of cheque processing and reduce settlement risk for all participants involved in the process.

– Governor Das emphasized that this initiative is aimed at enhancing customer experience by offering faster cheque clearance.

– Detailed guidelines on the new cheque clearing process will be issued soon.