Mumbai: India’s private sector leaders HDFC Bank and ICICI Bank will begin offering same-day cheque clearance starting October 4, 2025. This change is part of the Reserve Bank of India (RBI)’s updated rules to speed up cheque settlements and make the payment process more secure.
According to the banks, any cheque deposited from October 4 will be cleared within a few hours on the same day. Customers have been advised to keep sufficient balance in their accounts to avoid cheque bounce. The banks have also emphasised that all cheque details must be filled in correctly to prevent delays or rejection.
What is the Positive Pay System?
Alongside faster clearance, banks are also urging customers to use the Positive Pay System for added safety. This system has been introduced to reduce the risk of fraud by verifying cheque details before processing.
For cheques above Rs 50,000, customers need to share key details such as the account number, cheque number, date, amount, and the beneficiary’s name with the bank in advance. When the cheque is presented, the bank cross-checks these details. Only if the information matches will the cheque be cleared.
How Banks Will Handle the Process
Customers must provide cheque details to their bank at least 24 working hours before depositing. Depending on the customer’s region, details must be emailed to specific addresses for North, South, East, or West India. Once the email is received, the bank confirms the request with an acknowledgment message and verifies the details.
If the information matches, the cheque is accepted. In case of errors or mismatched details, the request is rejected, and the drawer has to resubmit the information correctly.
Why Positive Pay is Important
The RBI has made Positive Pay mandatory for cheques above ₹5 lakh, while it is strongly recommended for those above ₹50,000. Cheques validated under Positive Pay are also protected under the RBI’s dispute resolution system. This means customers using this feature will get priority if there is any fraud or payment dispute.
Disclaimer: This article is for general information only. Banking rules may change. Customers should confirm details with their bank before relying on this information for transactions.
