RBI Cheques Clearance Decision: RBI has announced to take this step with the aim of reducing the time taken in cheque clearing to a few hours and reducing the risks associated with it.
RBI Cheques Clearance Decision: Reserve Bank (RBI) is preparing to make a big change regarding Cheques clearing. This will clear the Cheques in just a few hours. For this, there is no need to wait for two days. RBI has announced to take this step with the aim of reducing the time taken in Cheques clearing to a few hours and reducing the risk associated with it. Right now it takes two days from depositing the Cheques to getting the amount. RBI Governor Shaktikanta Das announced this while releasing the monetary policy on Thursday.
Proposal to change CTS
Shaktikanta Das said, “It is proposed to change the existing process of Cheques Truncation System (CTS) with the aim of improvingCheques clearing, reducing settlement risk and providing better services to the customers.” He said that under the current CTS system, instead of processing in ‘batch’, there will be a system of continuous clearing in business hours.
How will the new system work
According to RBI, “In the new system, the Cheques will be ‘scanned’, presented and cleared in a few hours. This will make the Cheques clearing happen in a few hours whereas currently it takes up to two days (T+1). Das said that detailed guidelines in this regard will be issued soon.
