New Delhi, Oct. 3 -- The Reserve Bank of India (RBI) will implement a faster cheque clearing system from October 4, 2025, shifting from the current batch-based process to continuous clearing and settlement on realisation.

The new mechanism is expected to credit funds within hours, compared with the existing one-to-two business day cycle.

A nationwide trial is scheduled for October 3 to test systems and ensure banks are prepared for the rollout.

Under the revised framework, cheques deposited between 10 a.m. and 4 p.m. will be scanned and transmitted to the clearing house in real time. Settlements will take place on an hourly basis from 11 a.m. onwards.

The presenting bank will release funds to customers within an hour of settlement, su...