Major decision by RBI regarding clearance of cheques
The Reserve Bank of India has taken a major decision in the monetary revision policy today. The RBI has directed banks to reduce the time for clearing cheques. Currently, cheque clearance takes 1-4 days. Now the Central Bank has given instructions to reduce it to a few hours. Millions of employees and common people will benefit from this decision.
RBI gave this order
The Reserve Bank of India (RBI)-led Monetary Policy Committee (MPC) has proposed several measures to complete cheque clearance within hours, Governor Shaktikanta Das said while announcing that the outcome of the bi-monthly policy meeting will be scanned and approved within a few hours and this work will be done on a continuous basis during business hours. He said the clearing cycle will be reduced from the current T+1 days to a few hours. The central bank has said that detailed guidelines in this regard will be issued soon. Currently, the Cheque Truncation System (CTS) processes cheques with a clearing cycle of up to two business days.
This order will benefit from
The move is aimed at improving the efficiency of cheque clearing and reducing settlement risk for participants. The governor further said that the move is aimed at improving customer experience. Das said that it is proposed to convert CTS from the current batch processing approach to continuous clearance with “settlement at the time of realization.”
