RBI Introduces Same-Day Cheque Clearance: HDFC and ICICI Banks to Implement Starting October 4

Both HDFC Bank and ICICI Bank have advised their customers to maintain sufficient account balances to prevent cheque bounces.

New Delhi:

Following the Reserve Bank of India's (RBI) updated settlement framework aimed at providing faster and more secure payment processing, leading private banks including HDFC Bank and ICICI Bank have announced they will implement same-day cheque clearance starting October 4.

Under this new system, cheques deposited from October 4 onward will be processed and cleared within hours on the same day. Both financial institutions have emphasized the importance of customers maintaining adequate account balances to avoid cheque bounces and ensuring all details on cheques are correctly filled to prevent delays or rejections.

Banks are also encouraging customers to utilize the Positive Pay System for enhanced security measures. This system requires account holders to submit key cheque information for verification before processing. For cheques exceeding Rs 50,000, customers must provide the account number, cheque number, date, amount, and beneficiary name to their bank at least 24 working hours before the cheque is deposited.

Upon presentation of a cheque, banks will verify these details against the previously submitted information. If the details match, the cheque will be cleared; otherwise, the request will be rejected, requiring the drawer to resubmit the correct information.

Customers need to email cheque details to designated regional addresses. Banks will send confirmation messages upon receipt before proceeding with processing.

Currently, banks utilize the Cheque Truncation System (CTS), which transmits electronic images of cheques and their details to the drawee bank. While this eliminates the need for physical transfer of cheques, deposits made through drop boxes or ATMs typically take two working days for settlement.

The RBI has mandated Positive Pay for cheques above Rs 5 lakh, while strongly recommending it for cheques exceeding Rs 50,000. Cheques validated through Positive Pay are also protected under the RBI's dispute resolution mechanism.

According to the RBI's announcement, Phase 1 of continuous clearing and settlement will commence on October 4, 2025, with Phase 2 beginning on January 3, 2026.

Customers are advised to ensure accuracy in all cheque details to avoid rejection. The amount written in words must match the numerical figure, the date must be valid, and there should be no overwriting on the payee's name or amount. Additionally, the drawer's signature must match the specimen signature in the bank's records.