The Reserve Bank of India (RBI) has decided to delay the rollout of Phase 2 of the faster cheque clearance system by banks, originally set to commence on January 3, 2026. This delay is to provide banks with more time to streamline their processes, as stated by the RBI. Phase 1 of the system, which began earlier this year, will continue to function as usual.
The RBI has also adjusted the timing for cheque presentations. Banks can now present cheques between 9 am and 3 pm, with the confirmation or rejection process extended until 7 pm. Under the upcoming Phase 2 guidelines, banks will be required to clear or reject counter-deposited cheques within three hours, aiming to enhance customer experience by expediting payments.
Introduced by the RBI, the Cheque Truncation System (CTS) enables continuous clearance by utilizing digital images and electronic data, eliminating physical cheque movements between banks. Phase 1, initiated on October 4, 2025, introduced a seamless presentation window during the day, enhancing efficiency by allowing immediate scanning and transmission of cheque images to the clearing house upon receipt.
Phase 2, originally scheduled for January 3, 2026, aimed to further accelerate cheque clearance, ensuring prompt processing for bank customers. However, with the postponement of Phase 2, cheque clearing will persist under the existing Phase 1 framework, relieving banks from the imminent three-hour deadline requirement.
