BUSINESS
Millions of ICICI Bank customers will benefit! Checks will be cleared the same day starting October 4th.
ICICI Bank to Enable Same-Day Cheque Clearance from October 4, 2025: Here’s What Customers Must Know
ICICI Bank has announced a major convenience update for its customers that will significantly reduce cheque clearance time. Starting October 4, 2025, customers will no longer need to wait for two to three days for their cheques to clear. Instead, the money will be credited to their accounts on the same day.
This change comes in line with the Reserve Bank of India’s (RBI) newly introduced rules that shift cheque processing from the traditional batch-based system to a continuous clearing and settlement mechanism.
How Cheque Clearing Worked Until Now
Until this update, cheques were processed under the Cheque Truncation System (CTS). Under CTS, the bank scanned the cheque’s image and details before sending them to the clearing house. The settlement, however, followed a return cycle that usually took one or two working days, delaying the availability of funds in the depositor’s account.
This lag often caused inconvenience, especially for individuals and businesses relying on faster access to funds. With the RBI’s reforms, ICICI Bank customers will now experience same-day fund settlement, eliminating the waiting period.
How the New System Will Function
According to ICICI Bank, from October 4, 2025, cheque processing will take place during a single presentation session running from 10 AM to 4 PM.
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Once a cheque is deposited, it will be scanned immediately and sent to the clearing house.
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The clearing house will continuously transmit cheque images to the respective banks throughout the day.
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The receiving bank will validate and approve payments instantly, ensuring same-day settlement.
The RBI also confirmed that this upgrade will roll out in two phases:
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The first phase begins on October 4, 2025, covering a majority of transactions.
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The second phase will be fully implemented from January 3, 2026, making continuous settlement the new standard across the banking system.
What Customers Should Keep in Mind
ICICI Bank has issued certain guidelines to ensure smooth same-day clearance:
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Deposit before the cut-off time: Only cheques submitted before the daily cut-off will be cleared the same day.
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Ensure accuracy: The cheque must be filled correctly with no overwriting, cutting, or corrections.
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Matching details: The amount written in words and figures should match exactly.
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Proper signature and date: Any mismatch may result in rejection.
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Adequate balance: The issuing account must have sufficient funds to honor the cheque.
Importance of the Positive Pay System
To enhance security and prevent fraud, ICICI Bank strongly encourages customers to use the Positive Pay System (PPS).
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Under PPS, the issuer submits cheque details such as account number, cheque number, payee name, amount, and date to the bank in advance.
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These details are cross-verified during cheque processing. Only if the information matches will the cheque be cleared.
For cheques above ₹50,000, the bank recommends using Positive Pay. For amounts above ₹5 lakh, it is mandatory. Without PPS confirmation, high-value cheques may be rejected.
Why This Matters for Customers
This move by ICICI Bank is expected to benefit millions of its customers nationwide, ranging from individuals to businesses that frequently deal with cheque-based transactions. Faster clearance will not only improve liquidity for account holders but also reduce dependency on digital transfers for urgent payments.
By aligning with the RBI’s continuous clearing and settlement framework, ICICI Bank aims to modernize cheque transactions, making them more efficient and secure.
From October 4, 2025, customers can look forward to quicker access to funds, provided they follow the guidelines for error-free cheque deposits and adopt the Positive Pay System for added protection.
