The aforementioned development comes in the wake of glitches faced in implementation of Phase 1.
The Reserve Bank of India (RBI) has postponed the implementation of Phase 2 of Continuous Clearing and Settlement on Realisation in Cheque Truncation System (CTS) until further notice.
The central bank said this is to give banks more time to streamline their operations. Phase 2 of Continuous Clearing and Settlement on Realisation in CTS was to start on January 3, 2026.
The aforementioned development comes in the wake of glitches encountered during the implementation of Phase 1. Businessmen and individual customers of banks faced delays in cheque clearance after the RBI introduced the same-day cheque clearance facility on October 4, 2025.
In Phase 2, the item expiry time of cheques is envisaged to be changed to T+3 clear hours. For example, the cheques received by drawee banks between 10 am and 11 am must be confirmed, either positively or negatively, by 2 pm (3 hours from 11 am).
Cheques for which the drawee bank does not provide confirmation within the prescribed 3 hours will be deemed approved and included for settlement at 2 pm.
In its latest circular to Banks, RBI also said the timing of the presentation session has been modified to 9 am to 3 pm (against 10 am to 4 pm envisaged in the August 2025 circular), and the timing of the confirmation session is modified to 9 am to 7 pm (10 am to 7 pm).
Visit www.cagurujiclasses.com for practical courses
