Businesses, individuals baffled over delays in clearance of cheques
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Cheque clearance, which used to take 2–3 working days, now takes 5–7 working days
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ROY CHOWDHURY A
Businesses and individual banking customers report persistent delays in cheque clearance, even ten days after the Reserve Bank of India (RBI) launched its same-day clearance initiative on October 4, 2025.
Under the previous system, cheques typically cleared within two to three business days. However, processing now occasionally extends to five or seven days under the new framework.
Rachakonda Ravi Kumar, President of the Federation of Telangana Chambers of Commerce and Industry (FATCCI), stated that micro, small, and medium enterprises (MSMEs) relying on cheques for transactions have experienced clearance lags of up to five days. “Software-related cheque rejections could negatively affect MSMEs’ credit profiles,” he cautioned.
The delays appear nationwide, with officials from State Bank of India, Canara Bank, and Union Bank of India privately acknowledging operational challenges. High-volume corporate cheque transactions have compounded logistical strains, causing significant customer dissatisfaction.
A public-sector bank manager in Delhi confirmed backend complications since the RBI’s “Continuous Clearing” system went live. “Multiple cheques from October 9 remain uncleared due to software incompatibilities at certain banks,” the official disclosed.
Customers share similar frustrations. VT Gokhale, a Mumbai-based lawyer and former banker, recounted depositing a ₹3,000 cheque on October 4 that took until October 10 to reflect in his IDBI Bank account.
Though the RBI conducted year-long trials before implementation, sources indicate the central bank is now collaborating with the National Payments Corporation of India (NPCI) and financial institutions to stabilize processing timelines.
‘Most issues resolved’
In an October 14 statement, NPCI revealed that 1.49 crore financial instruments totaling ₹8.49 lakh crore had successfully cleared through its central system. However, initial rollout challenges caused delays and higher-than-usual cheque returns.
“Most technical hurdles have been resolved,” NPCI confirmed, noting system stability improvements since October 13. “We continue coordinating with banks to ensure same-day clearance consistency.”
With inputs from KV Kurmanath/Hyderabad, Sindhu Hariharan/Chennai and Jyoti Banthia/Bengaluru
Published on October 14, 2025
