RBI: The Reserve Bank has changed the rules of cheque clearing. Now it will not take 2 days for the check to be cleared and the money to come to your bank account. Money will be transferred to your bank account in just a few hours
RBI: The Reserve Bank has changed the rules of cheque clearing. Now it will not take 2 days for the cheque to be cleared and the money to come to your bank account. Money will be transferred to your bank account in just a few hours. Soon the cheques deposited in bank branches will be cleared on the same day. Currently, the deposited cheques are processed together in groups or batches at different time slots during the day. It takes two days for the cheque to be cleared. This causes customers to wait longer and also increases the risk of settlement.
What will be the benefit to the customers?
Cheque clearing works in batch processing mode through the Cheque Truncation System (CTS) and its clearing cycle is up to two working days. The Governor of the Reserve Bank of India (RBI) has proposed to change CTS from batch processing to clearing to improve the process of check clearing and reduce the risk of settlement. This new change will benefit the customers as the money will come into the account in less time.
What is Cheque Truncation System (CTS)?
CTS is a cheque clearing process operated by RBI. In this, instead of physically moving the cheque here and there, its electronic image is prepared and sent after capturing important data. This system was first introduced in 2008 as a pilot project in the National Capital Region (NCR).
Customers will get these benefits
With the new change, cheques will now be continuously scanned, presented and cleared during working hours, reducing the cheque clearing time by a few hours. Along with this, the need for physical transit of the cheque will be eliminated, due to which there will be no fear of losing the cheque. This will increase the chances of faster clearing of the cheque and quick credit in the account. While the importance of cheques is slowly diminishing in the age of digital payments like UPI, NEFT and RTGS, it still remains an important mode of payment.
