The Reserve Bank of India (RBI), vide its circular CO.DPSS.RLPD.No.S536/04-07-001/2025-2026 dated August 13, 2025, introduced the framework for Continuous Clearing and Settlement on Realisation (CCSR) in the Cheque Truncation System (CTS). Phase 1 of this initiative was implemented with effect from October 4, 2025.
Subsequently, on Wednesday (24.12.2025) RBI issued a partial modification to the above circular, postponing Phase 2 until further notice to allow banks additional time to streamline operational readiness. The revised CTS session timings are:
Presentation Session: 09:00 AM to 03:00 PM
Confirmation Session: 09:00 AM to 07:00 PM
Operational Modalities for Continuous Clearing with Settlement on Realisation
1. Single Presentation Session with Continuous Delivery
* There will be one single presentation session, running from 10:00 AM to 4:00 PM.
* Cheques received at bank branches shall be scanned and transmitted immediately to the clearing house on a continuous basis, without waiting for batch-wise submission.
* The clearing house will, in turn, release cheque images continuously to the respective drawee banks.
2. Continuous Inward Processing and Confirmation by Drawee Banks
* The confirmation session will commence at 10:00 AM and conclude at 7:00 PM.
* For every cheque received, the drawee bank must generate:
* Positive confirmation – if the cheque is honoured, or
* Negative confirmation – if the cheque is dishonoured.
* Each cheque will carry an “Item Expiry Time”, indicating the latest permissible time for confirmation.
* Drawee banks are required to process cheque images on a real-time and continuous basis as soon as they are received.
* The confirmation (positive or negative) must be immediately communicated to the clearing house after processing.
3. Time Available for Inward Processing – Phase-wise Explanation
Phase 1 (October 4, 2025 to January 2, 2026)
* Drawee banks must confirm cheques by the end of the confirmation session (7:00 PM).
* If confirmation is not provided by 7:00 PM, the cheque will be deemed approved and included for settlement.
* During Phase 1, the Item Expiry Time for all cheques is fixed at 7:00 PM.
Phase 2 (Initially proposed from January 3, 2026 – now postponed)
* The Item Expiry Time will be reduced to T + 3 clear hours.
* For example:
* Cheques received between 10:00 AM and 11:00 AM must be confirmed by 2:00 PM.
* If confirmation is not received within the stipulated 3-hour window, the cheque will be treated as deemed approved and included in settlement at that hour.
4. Settlement on Realisation
* No accounting entries will be passed merely on presentation of cheques.
* Settlement will be carried out hourly, starting from 11:00 AM until the close of the confirmation session.
* Hourly settlement will be based on:
* Cheques positively confirmed by drawee banks, and
* Cheques deemed approved due to non-confirmation within the prescribed time.
* Cheques receiving negative confirmation will not be included in settlement.
5. Release of Payment to Customers
* After completion of settlement, the clearing house will transmit details of **positive and negative confirmations to the presenting banks.
* Presenting banks must process this information and credit the proceeds to customer accounts immediately and in any case not later than one hour from successful settlement, subject to standard checks and safeguards.
Comparison: Traditional CTS vs CCSR Framework
| Parameter | Old CTS (Batch-based Clearing) | CCSR (Continuous Clearing & Settlement) |
| Presentation of Cheques | Batch-wise, at fixed cut-off times | Continuous presentation during session |
| Processing by Drawee Bank | Batch processing after presentation window | Real-time continuous processing |
| Confirmation | Implicit; returns handled separately | Explicit positive/negative confirmation |
| Item Expiry Concept | Not applicable | Defined item expiry time |
| Settlement Frequency | Once or twice a day | Hourly settlement on realisation |
| Customer Credit | After end-of-day settlement | Within 1 hour of settlement |
| Risk of Delay | Higher due to batch dependency | Reduced due to real-time flow |
| Operational Complexity | Lower, traditional process | Higher, technology-driven process |
Conclusion
The introduction of Continuous Clearing and Settlement on Realisation represents a **significant shift from batch-based cheque clearing to near real-time settlement**, enhancing speed, efficiency, and customer experience.
The postponement of Phase 2 underscores RBI’s intent to ensure that banks are **fully operationally ready** before tighter timelines are enforced.
