ICICI Bank To Launch Same-Day Cheque Clearing Process From October 2025

ICICI Bank has announced a significant change in its cheque clearing process. Starting from October 4, 2025, cheques will be cleared on the same day they are presented. This update aligns with the Reserve Bank of India's (RBI) new guidelines aimed at expediting cheque clearing and settlement processes.

To facilitate this change, ICICI Bank has informed its customers via email about the importance of depositing cheques within the branch's cut-off time for same-day clearance. The bank emphasised that this move will enhance fund availability, provide greater convenience, and reduce delays for customers.

Positive Pay Feature

The bank also highlighted the importance of using the Positive Pay feature to prevent fraudulent transactions. According to ICICI Bank's website, Positive Pay involves electronically reconfirming cheque details. Customers can share key details of cheques valued over Rs 50,000 with the bank for an additional layer of verification before processing.

Key details required for Positive Pay include account number, cheque number, beneficiary name, cheque amount, and date. This process aims to minimise fraudulent activities by ensuring these details are verified before a transaction is completed.

RBI's Continuous Clearing System

The RBI announced in August 2025 that cheque handling would transition from batch clearing to continuous clearing with settlement upon realisation. This transition will occur in two phases: Phase 1 on October 4, 2025, and Phase 2 on January 3, 2026.

Under this system, there will be a single presentation session from 10:00 am to 4:00 pm daily. During this time, banks will scan and send cheque images to the clearing house continuously. The clearing house will then release these images to the drawee bank on an ongoing basis.

Current Cheque Clearing Process

Currently, banks use the Cheque Truncation System (CTS) to process cheques. This system eliminates the need for physical transfer of paper cheques between banks by capturing an electronic image along with other essential details and sending it to the drawee's bank.

The return cycle is completed the next day after which settlement occurs. Once settled, customers receive their funds within one or two days after depositing their cheques.

Mandatory Use of Positive Pay

ICICI Bank recommends using Positive Pay for cheques above Rs 50,000 and mandates it for amounts exceeding Rs 5 lakh. If a cheque amount surpasses Rs 5 lakh without Positive Pay confirmation, it will be returned as per existing RBI guidelines.

The RBI stipulates that only cheques confirmed through Positive Pay are eligible for protection under its dispute resolution mechanism. Therefore, ensuring compliance with these requirements is crucial for successful cheque clearance.

This initiative by ICICI Bank aims to streamline operations while enhancing security measures against fraudulent activities in line with RBI's directives.