look news india
RBI Checks Clearance Decision: The Reserve Bank (RBI) is preparing to make a big change regarding check clearing. This will allow checks to be cleared in a few hours. There is no need to wait for two days for this. RBI has announced this step with the aim of limiting the time taken in check clearing to a few hours and reducing the risk associated with it. Currently, it takes two days from depositing a check to receiving the amount. RBI Governor Shaktikanta Das announced this while releasing the monetary policy on Thursday.
Proposal for change in CTS
Shaktikanta Das said, “With a view to improving cheque clearing, reducing settlement risk and providing better services to customers, it is proposed to change the existing process of Cheque Truncation System (CTS).” He said instead of processing in 'batches' under the existing CTS system, there will be a system of continuous clearing during business hours.
How will the new system work?
According to RBI, “In the new system, the cheque will be 'scanned', presented and cleared within a few hours. This will make cheque clearing happen within a few hours, whereas currently it takes up to two days (T+1).” Das said that detailed guidelines in this regard will be issued soon.
