The RBI plans to cut cheque clearing times to a few hours by introducing continuous clearing with ‘on-realisation-settlement’ in the Cheque Truncation System (CTS). Currently, cheque clearing can take up to two working days. This update will speed up payments, benefiting both payers and payees. Cheque truncation replaces physical cheque movement with electronic images, reducing costs and processing time. Grid-based CTS clearing will also eliminate outstation charges within the same grid.
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