RBI Shifts to Continuous Cheque Clearing System; NPCI Resolves Initial Glitches
Mumbai, 14th October 2025: In a major step towards faster financial settlements, the Reserve Bank of India (RBI) has transitioned the cheque clearing system from batch processing (T+1) to a continuous clearing system (T+0). The move, aimed at enabling same-day cheque clearance, came into effect on October 4, 2025, according to a statement by the National Payments Corporation of India (NPCI).
Following the rollout, NPCI reported that around 1.49 crore cheques amounting to ₹8,49,557 crore have been processed through the central clearing system. However, the transition initially faced some technical hiccups.
“During the initial phase, a few teething issues were observed both at the NPCI’s central system and at participating banks, leading to delays in clearance, crediting customer accounts, and an unusually high number of returns,” NPCI said in a statement.
The corporation assured that most of these challenges have now been addressed. “The central system has been stable since Monday, October 13, 2025. NPCI is working closely with banks to resolve any remaining issues and ensure same-day credit for presented cheques,” it added.
NPCI, established by the RBI and the Indian Banks’ Association (IBA), serves as the umbrella organization for operating retail payment and settlement systems across the country. It functions as a not-for-profit entity providing the infrastructure backbone for both physical and electronic payment systems in India.
The corporation has played a pivotal role in revolutionizing India’s digital payment ecosystem through innovations such as the Unified Payments Interface (UPI), RuPay, Immediate Payment Service (IMPS), National Automated Clearing House (NACH), Aadhaar Enabled Payment System (AePS), e-RUPI, and the National Electronic Toll Collection (NETC).
By adopting advanced technology and fostering collaboration across the financial sector, NPCI continues to drive India’s transition towards a faster, more inclusive, and globally recognized digital payment infrastructure.
