RBI's new real-time cheque system starts October 4: What it means

Business Aug 18, 2025

Starting October 4, the Reserve Bank of India (RBI) is rolling out a new Cheque Truncation System (CTS) to speed up how cheques are processed.
Instead of shuffling paper cheques around, banks will now send digital images and data between 10am and 4 p.m.—so everything moves online and in real time.

How the new system works

The rollout happens in two phases: until January 2026, banks have until 7pm to confirm cheques; after that, they'll need to confirm within three hours of receiving one.
If a cheque isn't confirmed by the deadline, it'll be settled automatically.
This upgrade means fewer errors, less chance for fraud, and much faster money transfers—making life easier for anyone who still uses cheques for payments or business.