Source: BS
The Reserve Bank of India (RBI) has postponed the January 3, 2026 deadline for rolling out Phase-2 of faster cheque clearing under the Continuous Clearing and Settlement on Realisation (CCSR) system in the Cheque Truncation System (CTS).
The move has been made under the Payment and Settlement Systems Act, 2007, which gives RBI the legal power to regulate payment systems and protect financial stability.
What Is CCSR?
- CCSR is RBI’s plan to speed up cheque clearing
- It replaces the older T+1 / T+2 settlement with faster processing
- It works within the existing CTS framework, where cheque images are exchanged digitally
What Was Planned in Phase-2?
- Cheque settlement within 3 hours
- Much faster than the current system
- Automatic clearance if banks fail to respond within the time limit
What Has Changed Now?
- Phase-2 has been deferred “until further notice”
- RBI wants banks to get more time to prepare
- Many banks are still adjusting old systems to meet faster settlement needs
Phase-1 Continues
- Phase-1 started on October 4, 2025
- Cheques are still cleared faster than before, but not within 3 hours
Revised CTS Timings
RBI has also changed cheque processing timings:
- Presentation session: 9:00 AM – 3:00 PM
- Confirmation session: 9:00 AM – 7:00 PM
These changes give banks more operational flexibility.
What Does This Mean for Customers?
- No immediate impact
- Cheque clearance will continue under existing timelines
- Once Phase-2 starts, customers can expect:
- Faster fund availability
- Better cash flow for businesses
- Less waiting time for cheque payments
