The Reserve Bank of India (RBI) has taken another step towards making cheque processing faster and more efficient. In its circular dated September 26, 2025, RBI announced that **Phase I of “Continuous Clearing and Settlement on Realisation in Cheque Truncation System (CTS)”** will go live from October 4, 2025.
To facilitate a smooth transition to continuous clearing, RBI has decided to revise session timings and conduct a **Special Clearing in CTS on October 3, 2025 (Friday)**, as per the following schedule:
The transition plan
To prepare for this change, RBI has scheduled a special clearing session on October 3, 2025. On that day, regular CTS sessions will not be held. Instead, cheques will be processed as follows:
* Return Session for October 1 presentations: 8:00 AM – 10:00 AM
* Special Clearing – Presentation Session: 11:00 AM – 3:00 PM
* Special Clearing – Return Session: 5:00 PM – 8:00 PM
All types of cheques will be processed only through these sessions.
After closure of the return session (08:00 AM – 10:00 AM) for instruments presented on October 1, 2025, there will be **no regular clearing sessions in CTS** on October 3, 2025. All categories of instruments will be processed only through the special clearing sessions.
Customer Impact
For customers, this change will bring faster and more predictable cheque settlements. Instead of waiting for the next batch session, cheques will move through the system continuously, reducing delays in crediting funds. This will particularly help businesses, traders, and individuals who depend on timely cheque clearance for working capital or large payments.
For the purpose of the special clearing:
* Banks shall use Clearing Type “99”.
* Session numbers shall be “21” (Presentation) and “22” (Return).
* Instruments presented with any other clearing type or session number will not be attached to the special clearing session.
Settlement will be carried out for both the presentation and return sessions in the special clearing. Banks are required to ensure sufficient balances in their settlement accounts to meet obligations arising from these sessions. Sponsor banks are advised to bring the contents of this circular to the notice of their sub-members.
This directive is issued under Section 10 (2), read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
Disclaimer
The information provided herein is intended solely for educational and informational purposes. It should not be construed as financial, legal, or investment advice. While efforts have been made to ensure accuracy, the content may be subject to change due to legislative amendments or judicial interpretations. Readers are advised to consult with qualified professionals for advice specific to their financial or legal circumstances.
