RBI Monetary Policy: Currently, it takes two days from the time of depositing the cheque to the time of receipt of the amount. But in the new system, it will be ‘cleared’ within a few hours of depositing the cheque.
RBI Monetary Policy: The settlement of the cheque (clearing) will now be done in a few hours. The Reserve Bank of India (RBI) has announced to take steps to reduce the time taken in cheque clearance to a few hours and reduce the risk associated with it. Currently, it takes two days from the time of depositing the cheque (cheque clearance) to the time of receipt of the amount. But in the new system, it will be ‘cleared’ within a few hours of depositing the cheque.
What did RBI say?
RBI Governor Shaktikanta Das, while announcing the third monetary policy review of the current financial year on Thursday, said, “It is proposed to change the current process of Cheque Truncation System (CTS) with the aim of improving Cheque clearing, reducing settlement risk and providing better services to customers.” He said that under this, instead of processing in ‘batch’ under the current CTS system, clearing will be arranged on a continuous basis during business hours.
How will the new system work?
According to RBI, “In the new system, the Cheque will be ‘scanned’, presented and cleared within a few hours. This will lead to the clearing of the Cheque in a few hours, whereas currently it takes up to two days (T plus 1). Das said that detailed guidelines will be issued soon in this regard. Apart from this, RBI has proposed to give the report given by banks to ‘credit’ information companies about their customers every fortnight. Currently this report is given once a month.
No change in interest rates for the ninth time
RBI has decided to keep the policy rates unchanged for the ninth consecutive time, citing the continued boom in economic activity and keeping a close watch on inflation, which has disappointed the common people who were expecting a reduction in interest rates. After six consecutive rate hikes by 250 basis points since May 2022, the rate hike cycle was stopped in April last year and it is still at this level.
