{"id":1008,"date":"2025-08-13T18:40:00","date_gmt":"2025-08-13T18:40:00","guid":{"rendered":"https:\/\/jbco.co.in\/?p=1008"},"modified":"2025-08-13T18:40:00","modified_gmt":"2025-08-13T18:40:00","slug":"introduction-of-continuous-clearing-and-settlement-on-realisation-in-cheque-truncation-system","status":"publish","type":"post","link":"https:\/\/jbco.co.in\/?p=1008","title":{"rendered":"Introduction of Continuous Clearing and Settlement on Realisation in Cheque Truncation System"},"content":{"rendered":"\n\n
\n

RBI\/2025-26\/73
CO.DPSS.RLPD.No.S536\/04-07-001\/2025-2026 <\/p>\n

August 13, 2025<\/p>\n

The Chairman \/ Managing Director \/ Chief Executive Officer of
Banks participating in Cheque Truncation System\/
National Payment Corporation of India<\/p>\n

Dear Sir \/ Madam,<\/p>\n

Introduction of Continuous Clearing and Settlement on Realisation in Cheque Truncation System<\/p>\n

Please refer to the Statement on Developmental and Regulatory Policies dated August 8, 2024<\/a>, announcing the transition of Cheque Truncation System (CTS) from the current approach of batch processing to continuous clearing with settlement on realisation.<\/p>\n

2. It has been decided to transition CTS to continuous clearing and settlement on realisation in two phases. Phase 1 shall be implemented on October 4, 2025 and Phase 2 on January 3, 2026. The modalities for the same are given in Annex<\/a>.<\/p>\n

3. All banks are advised to make their customers adequately aware of the changes in the cheque clearing process. <\/p>\n

4. Banks are also advised to be in readiness to participate in continuous clearing in CTS on the above dates.<\/p>\n

5. This directive is issued under Section 10 (2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007).<\/p>\n

Yours faithfully,<\/p>\n

(Saurabh Nath)
Chief General Manager<\/p>\n

\n

<\/a>Annex<\/p>\n

Modalities for Continuous Clearing with Settlement On-realisation in CTS<\/p>\n

1. Single presentation session with continuous delivery: <\/p>\n

    \n
  1. \n

    There shall be a single presentation session from 10:00 AM to 4:00 PM. <\/p>\n<\/li>\n

  2. \n

    Cheques received by the branches shall be scanned and sent to the clearing house by the banks immediately and continuously during the presentation session. <\/p>\n<\/li>\n

  3. The clearing house will in turn release the cheque images to drawee banks on a continuous basis. <\/li>\n<\/ol>\n

    2. Continuous inward processing and confirmation by banks: <\/p>\n

      \n
    1. \n

      The confirmation session shall start at 10:00 AM and close at 7:00 PM. <\/p>\n<\/li>\n

    2. \n

      For every cheque presented, the drawee bank shall generate either positive confirmation (for honoured cheques) or negative confirmation (for dishonoured cheques). <\/p>\n<\/li>\n

    3. \n

      Each cheque will contain the \u2018Item Expiry Time\u2019 which indicates the latest time by which confirmation for the presented instrument needs to be provided by the drawee bank. <\/p>\n<\/li>\n

    4. \n

      Processing by drawee banks is to be done continuously throughout the day and on a real time basis as soon as cheque images are received. <\/p>\n<\/li>\n

    5. \n

      Information of positive\/negative confirmation shall be sent by the drawee banks to the clearing house immediately after processing.<\/p>\n<\/li>\n<\/ol>\n

      3. Time available for inward processing: <\/p>\n

        \n
      1. \n

        During phase 1 (From October 4 to January 2, 2026), drawee banks shall be required to confirm (positively \/ negatively) cheques presented on them latest by end of confirmation session (i.e. 7:00 PM) else those will be deemed to have been approved and included for settlement. Item expiry time for all cheques shall be set as 7:00 PM in phase 1. <\/p>\n<\/li>\n

      2. In Phase 2 (from January 3, 2026), the item expiry time of cheques shall be changed to T+3 clear hours. For example, the cheques received by drawee banks between 10:00 AM and 11:00 AM will have to be confirmed positively or negatively by them by 2:00 PM (3 hours from 11:00 AM). Cheques for which confirmation is not provided by the drawee bank in the prescribed 3 hours shall be treated as deemed approved and included for settlement at 2:00 PM.<\/li>\n<\/ol>\n

        4. Settlement on realisation: <\/p>\n

          \n
        1. \n

          No accounting entries (settlement) will be posted for presentation of cheques. <\/p>\n<\/li>\n

        2. \n

          Starting from 11:00 AM, settlement will be arrived every hour till the end of confirmation session, based on the positive confirmations received from drawee banks and cheques considered deemed approved. <\/p>\n<\/li>\n

        3. \n

          No accounting entries shall be passed for cheques with negative confirmation. <\/p>\n<\/li>\n<\/ol>\n

          5. Releasing payment to customers: <\/p>\n

            \n
          1. \n

            On completion of settlement, clearing house shall release the information of positive and negative confirmations to the presenting bank. <\/p>\n<\/li>\n

          2. \n

            The presenting bank shall process the same and release the payment to the customers immediately, but not later than 1 hour from successful settlement, subject to usual safeguards.<\/p>\n<\/li>\n<\/ol>\n<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

            RBI\/2025-26\/73 CO.DPSS.RLPD.No.S536\/04-07-001\/2025-2026 August 13, 2025 The Chairman \/ Managing Director \/ Chief Executive Officer of Banks participating in Cheque Truncation System\/National Payment Corporation of India Dear Sir \/ Madam, Introduction of Continuous Clearing and Settlement on Realisation in Cheque Truncation System Please refer to the Statement on Developmental and Regulatory Policies dated August 8, 2024, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1008","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/jbco.co.in\/index.php?rest_route=\/wp\/v2\/posts\/1008","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jbco.co.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jbco.co.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jbco.co.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jbco.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1008"}],"version-history":[{"count":1,"href":"https:\/\/jbco.co.in\/index.php?rest_route=\/wp\/v2\/posts\/1008\/revisions"}],"predecessor-version":[{"id":1010,"href":"https:\/\/jbco.co.in\/index.php?rest_route=\/wp\/v2\/posts\/1008\/revisions\/1010"}],"wp:attachment":[{"href":"https:\/\/jbco.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jbco.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jbco.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}