**Private Banks to Start Same-Day Cheque Clearance from October 4**
New Delhi: Following the Reserve Bank of India’s (RBI) updated settlement framework for quicker and more secure payments, private banks including HDFC Bank and ICICI Bank have announced that they will initiate same-day cheque clearance starting October 4. Under the new system, cheques deposited from this date will be cleared within a few hours on the very same day.
Both banks have urged customers to maintain adequate balances in their accounts to prevent cheque bounce. Additionally, customers should ensure that all cheque details are accurately filled out to avoid any delays or rejections during the clearance process.
### Positive Pay System to Enhance Security
Banks are encouraging customers to use the Positive Pay System to further enhance security. This system requires prior submission of key cheque details for verification. Account holders must provide the following information to the bank at least 24 working hours before depositing cheques exceeding Rs 50,000:
– Account number
– Cheque number
– Date
– Amount
– Beneficiary name
Banks will verify these details upon cheque presentation. If the information matches, the cheque will be cleared. However, if there is any discrepancy, the request will be rejected, and the drawer must resubmit the correct details.
Customers are required to email the cheque details to specific regional addresses provided by their banks. Banks will send an acknowledgement message upon receipt before processing the cheque.
### Existing Cheque Truncation System and Its Limitations
Banks currently use the Cheque Truncation System (CTS), which transmits an electronic image of the cheque and its details to the drawee bank, thereby eliminating the need for the physical transfer of cheques. However, when cheques are deposited in drop boxes or automated teller machines, the settlement process usually takes two working days.
### RBI Guidelines and Timeline
The RBI has made the Positive Pay System mandatory for all cheques above Rs 5 lakh, while strongly recommending it for cheques above Rs 50,000. Cheques validated through Positive Pay are also protected under the RBI’s dispute resolution mechanism.
The RBI announced that Phase 1 of continuous clearing and settlement will begin on October 4, 2025, followed by Phase 2 starting January 3, 2026.
### Important Tips for Customers
To ensure smooth clearance, customers must:
– Provide accurate cheque details to avoid rejection
– Ensure the amount in words and figures matches
– Use a valid date on the cheque
– Avoid overwriting in the payee’s name or amount
– Ensure the drawer’s signature matches the bank records
Following these guidelines will help avoid any delays or complications in cheque processing.
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