Cheque Clearance In Just A Few Hours --Here's All About RBI's Latest Announcement

RBI has proposed to transition Continuous Clearing of Cheques under Cheque Truncation System (CTS) to continuous clearing with 'on-realisation-settlement', that will reduce the time of clearance of cheques in a few hours.

New Delhi: The Reserve Bank of India (RBI) on Thursday proposed measures to speed up clearance of cheques from cycle of up to two working days to just a few hours.

RBI Governor Shaktikanta Das, announcing the outcome of the three-day Monetary Policy Committee (MPC) meeting proposed to transition Continuous Clearing of Cheques under Cheque Truncation System (CTS) to continuous clearing with 'on-realisation-settlement', that will reduce the time of clearance of cheques in a few hours.

"Cheque Truncation System (CTS) currently processes cheques with a clearing cycle of up to two working days. To improve the efficiency of cheque clearing and reduce settlement risk for participants, and to enhance customer experience, it is proposed to transition CTS from the current approach of batch processing to continuous clearing with 'on-realisation-settlement'. Cheques will be scanned, presented, and passed in a few hours and on a continuous basis during business hours. The clearing cycle will reduce from the present T+1 days to a few hours," said Governor Das. 

He added that detailed guidelines in this regard shall be issued shortly.

Meanwhile, Reserve Bank of India has also announced that the UPI limit for tax payment matters has been increased from Rs 1 lakh to Rs 5 lakh per transaction. This will ease the process of tax payers with higher tax liabilities to pay their dues quickly and without any hassle.