NPCI says same-day cheque clearing stabilised; unions seek RBI help

NPCI says the new t+0 cheque clearing system is stable after early glitches, while bank unions urge RBI to ensure smoother implementation during the festive period

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Amid concerns over the stabilisation of the same-day cheque clearing system, the National Payments Corporation of India (NPCI) on Tuesday said most of the issues have now been resolved and that the central system has been stable since October 13, 2025. NPCI added that it is working with banks to address any remaining challenges to ensure same-day credit for presented cheques.

 

Given the difficulties in transitioning to the new clearing mechanism, banks have advised customers to use digital payment channels such as NEFT, RTGS, IMPS, and UPI for transactions. Bank unions, meanwhile, have sought the Reserve Bank of India’s (RBI’s) immediate intervention to streamline and stabilise the process during the festive period.

 

NPCI resolves initial ‘teething’ issues in clearing system

 

NPCI said in a statement that during the initial days of implementation, it encountered some “teething” issues both at the central system operated by NPCI and at participating banks. These caused delays in cheque clearing and crediting of customers’ accounts, along with a large number of returns.

 

As per the RBI’s directions, the cheque clearing system transitioned from batch processing (T+1) to a continuous clearing system (T+0) to enable faster cheque clearance. This change was implemented on October 4, 2025.

 

Post implementation, a total of 14.9 million instruments amounting to Rs 8,49,557 crore have been processed and cleared through the central system, NPCI said.

 

NPCI is responsible for setting standards, facilitating the secure exchange of electronic cheque images and data, and acting as the centralised hub for processing through its Centralised Clearing House (CCH).

 

Banks report delays; unions flag operational preparedness gaps

 

Urban cooperative lender Thane Bharat Sahakari Bank informed customers that cheque realisation was delayed under the continuous clearing system. “Considering that, we request our customers to use NEFT, RTGS, IMPS, and UPI services for transactions. We regret the inconvenience,” the bank said.

 

The Maharashtra State Bank Employees Federation (MSBEF), in a communication to the RBI, lauded the rollout of the continuous clearing and settlement system but raised concerns about its execution.

 

The new system appears to have been introduced without sufficient operational preparedness, the federation said. Bank staff are encountering major challenges, including software issues and inadequate training, leading to extended work hours and weekend shifts. This, it noted, is affecting customer service, with cases of debited accounts not showing corresponding credit, causing confusion and dissatisfaction.

 

Banks are also struggling with transaction reconciliation, increasing the risk of financial losses, the union—affiliated to the All India Bank Employees Association—added.

 

Unions request RBI intervention to ensure smoother transition

 

“We kindly request your intervention to streamline this process. If an immediate resolution is not possible, we respectfully suggest deferring the implementation of same-day cheque clearing until after the festive season and until adequate system readiness is assured,” said Devidas Tuljapurkar, general secretary, MSBEF.