Vanshika verma | Sep 24, 2025 |
ICICI Bank to Implement Same-Day Cheque Clearance Under RBI’s New Guidelines
With the Reserve Bank of India’s (RBI’s) new rules and guidelines regarding quick clearing and settlement of Cheques, ICICI Bank has declared that Cheques will be cleared on the same day of presentation effective from October 4, 2025.
ICICI Bank announced the same-day cheque clearance via e-mail to inform its customers that depositing Cheques within the respective branch cut-off time will be necessary for the same-day clearance of a cheque. According to the ICICI Bank, this initiative will help customers with quicker fund availability and better convenience and will reduce delays.
The bank urged its customers to issue Cheques correctly and maintain sufficient balance in their accounts for faster clearance. Via mail, the bank also motivated its customers to use the “Positive Pay feature” to avoid fraudulent cheque transactions according to RBI guidelines.
Positive Pay includes re-verifying the details and information of Cheques issued electronically. In this, customers will be able to share the major details of their Cheques of a value greater than Rs 50,000 with ICICI Bank to add an additional confirmation layer before processing the payment. The major cheque details include-
ICICI Bank recommends its customers use Positive Pay for Cheques exceeding Rs 50,000. However, it is mandatory to use Positive Pay for Cheques exceeding Rs 500,000.
The bank also explained clearly that if a cheque amount exceeds Rs 5 lakh and Positive Pay confirmation is not given, then that cheque will be returned. Cheques with Positive Pay confirmations are only allowed for protection under the dispute resolution mechanism governed by the RBI.
The Reserve Bank of India (RBI) announced that cheque handling will shift from the batch clearing system to the continuous clearing system with settlement on realization. This announcement was made in August 2025.
“It has been decided to transition CTS to continuous clearing and settlement on realization in two phases. Phase 1 shall be implemented on October 4, 2025, and Phase 2 on January 3, 2026,” said RBI in a notification.
Current way of clearing Cheques
Currently, banks use the Cheque Truncation System (CTS) to process Cheques. The CTS system removes the requirement to physically transfer paper Cheques between banks, which can take a longer time. Instead, on the same day, it makes an electronic image along with other major details of the cheque and sends it to the drawee’s bank. However, the return cycle is finished the next day, after which the settlement takes place.
Once the settlement process is completed, the customers receive their funds. This entire process takes a day or two after the cheque is deposited.
New way of clearing Cheques
RBI says that there will only be a single presentation session from 10:00 am to 4:00 pm. The Cheques received will be scanned and sent to the clearinghouse by the banks instantly and continuously during the presentation session. The clearinghouse will in return release the cheque images to the drawee bank on a continuous basis. This new process will be effective October 4, 2025.
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