RBI Defers January 3 Deadline for 3-Hour Cheque Settlement

Reserve Bank of India has deferred the rollout of Phase 2 of its faster cheque clearance framework, delaying a key step that was expected to further speed up settlement timelines from January 3, 2026. 

Phase 2 Rollout Put on Hold 

In a circular issued on December 24, the central bank said Phase 2 of the Continuous Clearing and Settlement framework will be postponed until further notice.  

Phase 2 was designed to require banks to approve or reject cheques within three hours of receiving cheque images, with automatic settlement if no response was provided within the stipulated time.  

With the delay, cheque clearing will continue under the existing Phase 1 structure. 

Phase 1 Continues with Revised Timings 

Phase 1 of the CCS framework, implemented earlier this year under the Cheque Truncation System, will remain operational. Under this system, cheques are cleared using digital images and electronic data instead of physical movement.  

RBI has also revised operational timelines, with cheque presentation now permitted between 9 am and 3 pm, while banks can confirm or reject cheques from 9 am to 7 pm. If no response is received within the confirmation window, the cheque is treated as approved. 

Read More: RBI Withdraws Proposal to Restrict Corporate Current Accounts! 

Conclusion 

With Phase 2 deferred, cheque clearance will remain governed by the current continuous settlement mechanism, while RBI is expected to announce a revised timeline for the next phase separately. 

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