The Governor of the Reserve Bank of India (RBI), Shaktimanta Das has announced that cheques will now be cleared within a matter of few hours on the same day. He made the announcement during the Monetary Policy Committee (MPC) . 

Cheques are currently cleared within two working days. The new amendments in the RBI (Reserve Bank of India) Policy proposed a continuous clearing system. This means that now the cheques will be cleared just within a few hours of submission.  

Clearing cheques within few hours through CTS 

 “At present, cheque clearing through Cheque Truncation System (CTS) operates in a batch processing mode and has a clearing cycle of up to two working days. It is proposed to reduce the clearing cycle by introducing continuous clearing with ‘on-realization-settlement’ in CTS. This means that cheques will be cleared within a few hours on the day of presentation. This will speed up cheque payments and benefit both the payer and the payee,” RBI Governor Shaktimanta Das added.  

Enhancing Transaction Limit

Further, he also informed about enhancing the transaction limit for the taxpayers through UPI from Rs 1 lakh to Rs 5 lakh per transaction. This will help in efficient tax payments by consumers through using UPI system. 

Delegated Payments 

The RBI Governor has also announced proposing the ‘delegated payments’ facility in UPI. Through delegated payments, it would allow an individual (primary user) to set a UPI transaction limit for another individual (secondary user) on the primary user’s bank account. 

Additionally, Das also highlighted that the frequency of credit information by lenders to credit information companies (CIC’s) will be increased on a fortnightly basis as compared to the current, i.e. monthly basis.  

 “Consequently, borrowers will benefit from faster updation of their credit information, especially when they repay their loans. The lenders, on their part, will be able to make better risk assessments of borrowers,” he added. 

Benefit to UPI users 

Notably, allowing delegated payments will play a pivotal step in expanding the userbase of UPI. Through this, people can now use one bank account for making payments through UPI. 

This move will also enhance and strengthen financial and digital literacy, especially in the rural areas, to use bank accounts efficiently. It will also enable the consumer confidence with safe and hassle-free financial transactions, contributing towards digital India.