RBI's New Cheque Settlement System Faces Initial Glitches, NPCI Promises Quick Resolution

India’s banking system has taken a major technological leap with the rollout of the new continuous cheque settlement system—a reform designed to make cheque clearing faster and more efficient. However, just weeks after its implementation, the system has encountered some technical and operational issues, prompting the National Payments Corporation of India (NPCI) to step in with assurances of a swift resolution.

Faster Cheque Clearing, Minor Hiccups

Under the new system—introduced by the Reserve Bank of India (RBI) and operated by NPCI—cheques are processed and settled within hours, replacing the older system that required up to two working days. This upgrade is part of India’s ongoing efforts to modernize its payment infrastructure and offer customers quicker and more reliable financial services.

Since its launch on October 4, 2025, the central clearing platform has successfully processed over 2.56 crore cheques, amounting to a total transaction value exceeding ₹3.01 lakh crore. NPCI confirmed that all participating banks have verified the settlement of these cheques and have been advised to credit funds to customers’ accounts immediately after clearance.

Despite this success, some users have reported delays in cheque crediting, mainly due to technical mismatches between bank systems and the central platform. NPCI acknowledged these initial challenges and apologized for the inconvenience caused to customers during the transition phase.

NPCI’s Assurance: Glitches Will Be Fixed Soon

Addressing the issue, NPCI stated that its technical teams are working around the clock to resolve the operational glitches and ensure the system runs smoothly. The organization assured users that these are temporary issues commonly faced during large-scale digital rollouts and that service stability will improve soon.

Banks have been instructed to maintain clear communication with customers, provide assistance in case of delays, and encourage the use of alternate digital payment modes—such as UPI, IMPS, or net banking—to ensure uninterrupted transactions while the system stabilizes.

A Step Toward a Transparent and Efficient Banking System

The continuous cheque settlement system is a joint initiative of the RBI and NPCI aimed at transforming cheque-based transactions in India. By minimizing processing time and introducing automation, it seeks to make cheque payments faster, more transparent, and secure.

Experts believe that once fully operational, this system will significantly reduce settlement backlogs and enhance interbank coordination, making the entire banking ecosystem more customer-centric and technologically advanced.

What Customers Should Know

NPCI has urged customers to remain patient if they experience temporary delays in cheque clearance. In such cases, individuals are advised to contact their banks directly for updates and assistance.

While teething problems are expected in any large-scale system overhaul, the long-term benefits of this new mechanism—faster transactions, improved transparency, and reduced manual intervention—are likely to outweigh the short-term inconvenience.

Looking Ahead

The new cheque settlement system marks another milestone in India’s push toward digital and real-time payment solutions. Alongside innovations like UPI and digital banking, it represents the country’s determination to streamline traditional financial processes.

As NPCI continues fine-tuning the system, customers can look forward to a more efficient, faster, and reliable cheque payment experience, reinforcing trust in India’s rapidly evolving financial infrastructure.