ICICI Bank has announced that from October 4, 2025, cheques will be cleared on the same day of presentation in line with the Reserve Bank of India’s (RBI) new guidelines on quicker clearing and settlement. Customers were informed via e-mail that depositing cheques within the respective branch cut-off time will be essential to benefit from same-day clearance. The bank highlighted that this initiative will provide quicker fund availability, greater convenience, and reduced delays. To avoid issues, customers are advised to issue cheques correctly and ensure sufficient balance in their accounts.
ICICI Bank Mandates Positive Pay for High-Value Cheques to Prevent Fraud
In line with RBI guidelines to prevent fraudulent transactions, ICICI Bank is encouraging customers to use the Positive Pay system. Positive Pay involves reconfirming cheque details electronically, particularly for cheques above ₹50,000. Customers need to provide details such as account number, cheque number, beneficiary name, cheque amount, and cheque date before the transaction is processed. This additional verification layer reduces fraud risk. The facility is recommended for cheques above ₹50,000 and mandatory for amounts exceeding ₹5,00,000. ICICI Bank has clarified that cheques above ₹5 lakhs without Positive Pay confirmation will be returned, and only cheques with confirmation will be covered under RBI’s dispute resolution mechanism.
For successful cheque clearance, customers must ensure that the amount in words and figures match, the date is valid, and there are no alterations or overwriting. The drawer’s signature should also match the specimen signature with the bank.
RBI Introduces Continuous Cheque Clearing System from October 2025
The RBI, in August 2025, announced a transition from the batch clearing system to continuous clearing and settlement on realisation. Phase 1 begins on October 4, 2025, with Phase 2 on January 3, 2026. Banks will follow a single presentation session from 10:00 am to 4:00 pm, where cheques will be scanned and sent continuously to the clearing house. At present, cheques are cleared through the Cheque Truncation System (CTS), where settlement typically takes one to two days.
Summary:
ICICI Bank will enable same-day cheque clearance from October 4, 2025, under RBI’s new continuous settlement system. Customers must deposit cheques before cut-off and use Positive Pay for high-value cheques. Positive Pay is mandatory above ₹5 lakhs. RBI’s phased transition replaces the current batch-based CTS clearing process.
