Continuous Clearing and Settlement of Cheques

As per RBI circular RBI/2025-26/73 CO.DPSS.RLPD.No.S536/04-07-001/2025-2026 Dated August 13^thAugust 2025, on Introduction of Continuous Clearing and Settlement on Realisation in Cheque Truncation System, The Reserve Bank of India (RBI) has decided on the transition of the Cheque Truncation System (CTS) from the current approach of batch processing to continuous clearing with settlement on realisation in two phases. Phase 1 will be implemented on October 4, 2025 and Phase 2 on January 3, 2026.

Under the new rule, cheques will be scanned, presented, and cleared continuously during business hours, reducing the clearing cycle from the current T+1 days to just a few hours. During the 1^st Phase, Cheques presented in clearing will be processed on the same day and in Phase 2, cheques presented will be processed in every 3 hours.

Advantages of Continuous Cheque Clearing in Banking

Quick Availability of Funds: Funds will be cleared much faster, within hours
Enhanced Customer Experience
Minimizing bottlenecks and delays between presentation and realization time

Frequently Asked Questions

What is Cheque Truncation?

Cheque Truncation is the process of stopping the physical movement of cheques. As per the amended Negotiable Instruments Act 1881, in cheque truncation, the movement of the physical instrument is stopped and replaced by electronic images and associated MICR line of the cheque.

What is CTS- Continuous Clearing Process?

Continuous clearing is a new cheque processing system, implemented in India by the Reserve Bank of India (RBI) from October 2025, that significantly reduces the time it takes to process cheques from days to a few hours. Instead of waiting for fixed batch sessions, cheques are processed and confirmed on an ongoing, near real-time basis throughout the bank's business hours

When is CTS- Continuous Clearing Process getting implemented?

Starting October 4, 2025, the current batch processing system for cheques will be replaced with continuous clearing and settlement on realisation, meaning cheques will be processed throughout the day instead of in fixed batches. The transition will occur in two phases: Phase 1: Begins on October 4, 2025 and Phase 2: January 3, 2026.

What Benefits of Continuous Clearing Process to customers?

IndusInd customers benefits in the following ways, a) Faster realization and Credit; b) Extended presentment Window c) Improved reconciliation services for corporate customers and Government Departments d) Reduction in Geographical dependence e) Reduced operational risk due to inbuilt security in the workflow.

We request you to follow the Do’s and Don’ts while signing the cheques

Do's :

Ensure to use only CTS-2010 standard cheques. CTS-2010 shall be printed on the left side of the cheque.
Write clearly and legibly and always use permanent ink pens such as a ball pen.
Write all the details (beneficiary name, date, amount in words and figures) on the cheque using the same pen, at once and do it all yourself. It not only helps you to avoid mistakes but also prevents any misuse.
Begin writing the amount in words close to the word “Rupees” without leaving too much space in between the words written and end with the word “only”. The amount in figures must be written close to the “₹” box and put “/-” after the amount in numbers and strike through unused space in the name and amount fields to avoid any further additions.
Sign clearly and only in the space provided.
Alteration is permitted only in the date field. Affix countersign against the altered date.
Make sure that no cheque is removed from the cheque book without your knowledge and ensure that spoiled cheques are completely destroyed.
Ensure that cheques are kept in a safe and locked place, and never leave cheques, whether signed or unsigned, unattended.
Report immediately to your bank if there are cheques missing from your chequebook or discrepancies in your bank statement, and even request that payment be stopped for the lost cheque and chequebook.
Ensure your account has sufficient funds before you issue a cheque.
For a cancelled cheque, write “cancelled” clearly across the cheque to make it unusable.
For same day realization of cheques, it is recommended to deposit the cheques over the counter in the branches within the clearing cut of timings. Click here for branch wise cut off timings for same day processing of cheques.
All pick-ups done through Doorstep Banking, CMS pickup, Offsite cheque drop box, cheques would be sent for clearing on same day if received at Branch within the cut off time of 2:00 PM.

Don't:

Write below the MICR (Magnetic Ink Character Recognition) field of the cheque to allow smooth clearing of your cheque. The MICR field is usually a 5/8 inch band at the bottom of the cheque.
Sign any blank cheque or give any blank cheque as payment.
Use erasable pen or pencil, which can be easily erased and written over, to write details on a cheque.
Fold, pin or staple written cheques. If the cheque is folded, the clarity of the wordings, which fall across the “folded” lines, may be affected.
Alter/amend/erase content on the face of the cheque.

As our valued customer, we bring to you Positive Pay System for Cheque Payments wherein you can safeguard all your cheque payments by registering to our Positive Pay Service. Positive Pay enables you to keep the Bank pre-informed about all the cheques that you will present for clearing. Please visit our webpage for more information on Positive Pay Service. https://www.indusind.bank.in/in/en/personal/Positive-Pay.html

Customer may also reach to our IndusInd Bank representative

Reach Us - Customer Care

Need help? Simply connect to an IndusInd representative at 022 68577777 / 022 44066666 / 022 42207777 / 1860 267 7777
https://www.indusind.com/in/en/personal/reach-us.html