NPCI's New System Clears ₹3 Lakh Crore in Continuous Cheque Processing

The National Payments Corporation of India (NPCI) has announced that more than ₹3 lakh crore worth of cheques have been cleared through its Continuous Clearing process under the Cheque Truncation System (CTS) since its nationwide rollout on October 4, 2025, as per the news reports. 

The move represents a key step in modernising India’s cheque settlement mechanism to ensure faster and more consistent clearing cycles.

System Performance and Implementation

NPCI said in a media statement that the system has facilitated the positive clearance of 2.56 crore cheque instruments through its centralised platform, with all cheques receiving either positive or negative confirmations. Banks have been advised to credit accounts promptly for those confirmed positively.

While the process is largely functioning as designed, NPCI noted that “some teething issues continue to be observed in the systems and processes” at both the central and bank levels. The payments authority assured that it is working to stabilise the system and ensure that all cheques presented are cleared on the same day.

Customer Impact and System Objective

NPCI acknowledged minor delays experienced by customers during the initial implementation phase and expressed regret for the inconvenience. It reaffirmed its commitment to a seamless cheque-clearing experience as the transition advances.

The Continuous Clearing initiative aims to streamline cheque processing by eliminating batch-based clearances and enabling real-time or near-real-time settlements. This is expected to reduce turnaround times, enhance operational efficiency, and strengthen liquidity across the banking system.

Read More: NPCI Launches AI-Powered “UPI Help” to Assist Users with Digital Payments!

Conclusion

By introducing Continuous Clearing, NPCI has reinforced its role as a driver of payment system innovation in India, extending its digital efficiency to traditional instruments like cheques. The system is poised to make cheque settlements faster, more transparent, and reliable across the country.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.