HDFC & ICICI Bank Cheque Clearance: From October 4, 2025, ICICI Bank and HDFC Bank will start clearing cheques the same day you deposit them. The Reserve Bank of India made new rules to make cheque payments faster, safer, and easier for people. Right now, banks use the Cheque Truncation System, or CTS. It sends a digital copy of the cheque to the bank that has to pay, but usually it takes a day or two for the money to show up in your account.
The key details include:
- Account number
- Cheque number
- Beneficiary/Payee name
- Cheque amount
- Cheque date
With the new systems banks will scan cheques and send them to the clearing house non-stop between 10 am and 4 pm. The clearing house will also send the cheque images to the paying bank without delay, so the money can be settled faster.
ICICI Bank told its customers by e-mail that cheques should be deposited before the branch cut-off time to get same-day clearance. The bank also said it’s important to write cheques correctly and keep enough money in the account to avoid bounce or delays.
HDFC & ICICI Bank Cheque Clearance
Along with same-day clearance, banks are encouraging customers to use the Positive Pay System. ICICI Bank explains that Positive Pay helps prevent fraud by reconfirming key cheque details before processing. Customers can share information such as account number, cheque number, beneficiary name, amount, and date for cheques above Rs 50,000.
Positive Pay is mandatory for cheques above Rs 5 lakh. If a cheque over Rs 5 lakh is submitted without Positive Pay confirmation, it will be returned. Cheques verified through Positive Pay are also protected under RBI’s dispute resolution mechanism.
For a cheque to clear successfully the amount in words and figures must match, the date must be valid, there must be no overwriting or corrections, and the drawer’s signature must match the bank’s records. These rules add an extra layer of security and help avoid fraudulent transactions.
The RBI said in a notification: “It has been decided to transition CTS to continuous clearing and settlement on realisation in two phases. Phase 1 shall be implemented on October 4, 2025, and Phase 2 on January 3, 2026. ”
How are Cheques cleared right now?
banks use something called the Cheque Truncation System, or CTS, to handle cheques. This system stops the need to physically send paper cheques from one bank to another, which used to take a lot of time. Instead, the bank takes a digital picture of the cheque and records all the important details on the same day. It then sends this information to the bank that needs to pay the money.
After that, the cheque goes through a return process the next day, and once that is complete, the payment is settled. Only then does the customer get the funds in their account. Basically, with the current system, it takes about one or two days after depositing a cheque for the money to reach the customer.
