RBI delays January 3 rollout for 3-hour cheque clearance: What it means

Faster cheque settlements on hold as banks get more time to prepare

The Reserve Bank of India (RBI) has postponed the January 3, 2026 deadline for implementing faster cheque clearance under its Continuous Clearing and Settlement on Realisation (CCSR) initiative in the Cheque Truncation System (CTS). 

The directive comes under the Payment and Settlement Systems Act, 2007, underscoring the RBI’s legal authority to regulate payment processes and safeguard financial stability.

Phase 2 of faster cheque clearance deferred

Phase 1 of the CCSR project, which aims to shorten the time taken for cheque settlement, was launched on October 4, 2025. Under Phase 2, cheques were set to be cleared within three hours, significantly reducing the settlement timeline compared with the traditional T+1 or T+2 framework. 

 

However, the RBI has now decided to defer the rollout “until further notice” to allow participating banks to better prepare for operational changes. This postponement highlights the challenges banks face in aligning legacy systems with faster settlement requirements.

Revised timings for CTS operations

Alongside the delay, the RBI has also revised the operational timings for CTS sessions: 

·  Presentation session: 09:00 AM to 03:00 PM

 

·  Confirmation session: 09:00 AM to 07:00 PM 

These adjustments are intended to provide more flexibility to banks while ensuring a smoother transition when the faster cheque clearance system is finally implemented.

What does this mean for customers?

For cheque issuers and recipients, the immediate impact is minimal, as the existing clearance timelines will continue until Phase 2 is officially launched. Once implemented, the three-hour settlement window is expected to benefit businesses and individuals by improving liquidity management and reducing delays in fund transfers.