RBI postpones implementation of Phase 2 of Cheque Truncation System
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The RBI’s decision follows operational challenges encountered during Phase 1 rollout.
The Reserve Bank of India (RBI) has deferred the launch of Phase 2 for Continuous Clearing and Settlement under the Cheque Truncation System (CTS), with no revised implementation timeline announced. This extension aims to provide banks additional time to streamline backend processes.
Originally scheduled for January 3, 2026, Phase 2 will now undergo further review before activation. The move follows technical and operational hurdles observed during Phase 1 execution, where bank customers experienced processing delays after the RBI activated same-day cheque clearance functionality in October 2025.
Under Phase 2 proposals, cheque validity periods would shift to a T+3 clear-hour model. For example, instruments received between 10 am and 11 am would require drawee bank confirmation—either acceptance or rejection—by 2 pm. Items lacking explicit confirmation within this three-hour window would automatically clear through the 2 pm settlement cycle.
The central bank also revised operational windows in updated guidelines. Presentation sessions will now operate from 9 am to 3 pm instead of the previously announced 10 am–4 pm timeframe, while confirmation windows extend from 9 am through 7 pm.
Published on December 24, 2025
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