RBI has issued a circular announcing the transition of Cheque Truncation System (CTS) from the current approach of batch processing to continuous clearing with settlement on realisation.
Under the new CTS modalities, there will be a single cheque presentation session (10 AM–4 PM) with continuous image delivery to drawee banks, which must process and confirm cheques in real time. In Phase 1 (Oct 4, 2025–Jan 2, 2026), confirmations must be given by 7 PM, after which unconfirmed cheques are deemed approved; in Phase 2 (from Jan 3, 2026), confirmations must be within T+3 hours. Settlements, based only on positive or deemed approvals, will occur hourly from 11 AM, with presenting banks required to credit customers within an hour of settlement.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12891&Mode=0
