ICICI Upgrade in Cheques
New Delhi
ICICI Bank has announced a major update to its cheque settlement process to make transactions faster and more convenient for customers. Starting October 4, all cheques deposited at the bank’s branches will be cleared and credited within one working day.
This move aligns with the Reserve Bank of India’s (RBI) new cheque clearing system, which aims to speed up settlements. The earlier batch-based process will be replaced by a continuous clearing framework, allowing cheques to be cleared within hours of submission.
Currently, banks use the Cheque Truncation System (CTS), which sends an electronic image of the cheque and its details to the drawee bank. While CTS eliminates the need for physical transfer, cheques deposited in drop boxes or ATMs usually take two working days to settle.
ICICI Bank also highlighted its Positive Pay feature for high-value cheques, which adds an extra layer of security. Customers can electronically confirm cheque details before issuing cheques above Rs 50,000. For cheques over Rs 5 lakh, using Positive Pay is mandatory, or the cheque will be returned. Only cheques verified through Positive Pay are covered under the RBI’s dispute resolution process.
According to the RBI’s August 2025 directive, batch clearing will be replaced with continuous clearing. Phase 1 begins on October 4, 2025, and Phase 2 starts on January 3, 2026. Cheque presentation will occur once daily from 10:00 am to 4:00 pm starting October 4.
Customers are advised to ensure all cheque details are accurate, including matching amounts in figures and words, valid dates, correct payee information, and proper signatures, to avoid rejection.
