The Reserve Bank on Wednesday postponed implementation of the second phase of the faster cheque clearance mechanism to provide more time to banks to streamline their operations.
India processes as many as 1.2 billion cheques annually and, therefore, the implementation of this system would drastically cut down the waiting period involved. The system will be implemented nationwide from January 1.
The RBI will introduce a new mechanism from October 4 for clearance of cheques within hours of being presented to banks, reducing the current time period of up to two working days. Cheques will be scanned, presented, and passed in a few hours and on a continuous basis during business hours.
If your chequebook is not compliant with RBI's cheque truncation system (CTS), implemented from October 1, it may be invalid from January 1, 2013.
The cheque truncation system, which is currently operational at the major clearing houses of the country, has stabilised well and it has made large efficiency gains: RBI
It might impose some fee for such cheques after March and how to do so was being discussed.
Clearing the confusion over honouring cheques with corrections, the Reserve Bank of India said this will be applicable only for cheques cleared under the image-based cheque truncation system (CTS).
Come March next year, consumers should be able to get their local cheques cleared in a day.
Will work full day on other Saturdays; bank branches to be shut on 2nd, 4th Saturday from next month
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