In a major update ICICI Bank has announced that it will clear all the cheques on the same day of presentation from October 4, 2025. This follows recent directions by Reserve Bank of India’s on quick clearing and settlement of cheques.
Faster fund access
According to the bank, the change will benefit account holders by increasing convenience, accelerating fund availability, and reducing delays. For efficient processing, it has advised clients to carefully issue checks, make sure there is enough balance, and refrain from making changes or overwriting.
RBI push for continuous clearing
The update comes after the Reserve Bank of India announced in August 2025 that banks should switch from clearing checks in batches to a continuous settlement system. On October 4, 2025, banks will start scanning and sending checks to clearing houses on a rolling basis between 10 a.m. and 4 p.m. as part of Phase 1. In January 2026, phase two will be put into action.'
It's important to note that the bank has also informed clients about the Positive Pay function, which was created to prevent fraud. Under this, for checks totaling more than ₹50,000, check issuers verify important information such as account number, check number, payee's name, amount, and date. This extra check serves as an extra degree of protection.
Recommended: Positive Pay for cheques above ₹50,000
Mandatory: Positive Pay for cheques above ₹5 lakh
Additionally, the bank clarified that the checks for more than ₹5 lakh without Positive Pay will be returned. According to RBI guidelines, its dispute resolution mechanism only protects checks that have been verified through Positive Pay.
Existing system vs. new modifications
Banks currently use the Cheque Truncation System (CTS), which allows for electronic transmission of check images but requires one or two days for settlement. Customers can anticipate same-day clearance with the new RBI-mandated system, which will significantly improve check processing.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
