HDFC, ICICI to Roll Out Same-Day Cheque Clearance from October 4 under RBI’s New Framework

Mumbai, Oct 2025 : Leading private banks HDFC Bank and ICICI Bank have announced that they will implement same-day cheque clearance starting October 4, in line with the Reserve Bank of India’s (RBI) updated settlement framework aimed at ensuring quicker and more secure payments.

Under the new system, cheques deposited on or after October 4 will be cleared within a few hours on the same day, significantly reducing the earlier processing time of up to two working days. Both banks have urged customers to maintain adequate account balances to avoid cheque bounces and to ensure that cheque details are filled out correctly to prevent delays or rejections.

To enhance security, customers are advised to use the Positive Pay System (PPS). This requires the drawer to submit cheque details — including account number, cheque number, date, amount, and beneficiary’s name — to the bank at least 24 working hours before depositing cheques exceeding ₹50,000. The bank will then verify these details upon cheque presentation. If the information matches, the cheque will be cleared; if not, it will be rejected, and the drawer will need to resubmit the details.

Banks have also set up dedicated regional email addresses for customers to share cheque details. An acknowledgement message will be sent upon receipt before processing begins.

Currently, banks use the Cheque Truncation System (CTS), which transmits an electronic image of the cheque and its details to the drawee bank, eliminating the need for physical transfer. However, cheques deposited through drop boxes or ATMs often take two days to clear. The RBI’s new framework will eliminate this delay, streamlining settlement for customers.

Additionally, the RBI has made Positive Pay mandatory for cheques above ₹5 lakh and strongly recommended it for amounts above ₹50,000. Cheques validated under Positive Pay also enjoy protection under the RBI’s dispute resolution mechanism, providing greater security for both issuers and beneficiaries.

The central bank announced that Phase 1 of continuous clearing and settlement will be implemented from October 4, 2025, followed by Phase 2 on January 3, 2026.

Banks have also reminded customers to carefully fill out cheque details. The amount in words and figures must match, the date should be valid, there should be no overwriting in the payee’s name or amount, and the drawer’s signature must correspond to bank records.

This reform marks a major step toward faster, more reliable, and safer cheque-based transactions for Indian banking customers.