RBI Delays Next Phase of Faster Cheque Clearing, Sets New Session Hours

Overview

• The Reserve Bank of India postponed Phase 2 of the continuous clearing reform until further notice from its planned January 3 start.
• Under the revised schedule, cheque presentation will run from 9:00 am to 3:00 pm and confirmation will run from 9:00 am to 7:00 pm.
• Phase 2 would have required cheques to be cleared within three hours of realisation and shifted item expiry to T+3 clear hours.
• Phase 1, which began on October 4, remains in force with a rule that drawee banks must confirm by the end of the confirmation session or items are deemed approved.
• The reform replaces the previous up-to-two-working-day cycle with cheques being scanned, presented, and passed within hours during business hours.