Bhubaneswar, Aug. 13 -- https://images.odishatv.in/uploadimage/library/16_9/16_9_0/RBI_1740039618.jpg

The RBI will introduce a new mechanism from October 4 for clearance of cheques within hours of being presented to banks, reducing the current time period of up to two working days.

Cheques will be scanned, presented, and passed in a few hours and on a continuous basis during business hours. The clearing cycle will be reduced from the present T+1 days to 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, the RBI has decided to transition CTS fro...