Current · Source: Reserve Bank of India · RBI/2025-26/156 · issued 24 Dec 2025 · ~1 min read
Quick answerRBI has postponed Phase 2 of continuous clearing and settlement in Cheque Truncation System until further notice, and revised presentation session timing to 9 AM–3 PM and confirmation session to 9 AM–7 PM.
The rule, in the simplest words
Banks participating in Cheque Truncation System (CTS) have more time to prepare for Phase 2 of continuous clearing and settlement.
The presentation session timing is now from 9 AM to 3 PM, and the confirmation session timing is from 9 AM to 7 PM.
Banks should update their internal systems and staff training materials to reflect the new session timings.
How it plays out — a real example
Rahul, a payments & clearing officer in Indore, is relieved to hear that Phase 2 of CTS has been postponed. He can now focus on updating the bank's internal systems and staff training materials to reflect the new presentation and confirmation session timings, ensuring a smoother cheque processing workflow for their customers.
What changed
Phase 2 of continuous clearing and settlement on realisation in CTS, as referenced in the circular dated August 13, 2025, is now postponed until further notice to give banks more time to streamline operations. Additionally, the presentation session timing has been changed to 9:00 AM to 3:00 PM, and the confirmation session timing to 9:00 AM to 7:00 PM.
What it means for you
Banks participating in CTS get additional breathing room to align their back-office processes before Phase 2 goes live, reducing operational pressure. The revised session timings modify the clearing window, which may affect intraday liquidity management and cheque processing workflows for lenders.
What you must do
Update internal systems and staff training materials to reflect the new presentation (9 AM–3 PM) and confirmation (9 AM–7 PM) session timings.
Use the postponement period to review and streamline cheque processing operations for Phase 2 readiness.
Communicate the revised timings and postponement to relevant operations, IT, and clearing teams.
Monitor future RBI circulars for the new Phase 2 implementation date.
Who it affects
Banks participating in Cheque Truncation System, National Payments Corporation of India, Clearing and settlement operations teams, Cheque processing and back-office staff
❓ Common questions
Why has Phase 2 been postponed?
RBI has postponed Phase 2 until further notice to allow banks more time to streamline their operations before implementation.
What are the new session timings for CTS?
The presentation session timing is now 9:00 AM to 3:00 PM, and the confirmation session timing is 9:00 AM to 7:00 PM.
When was Phase 1 implemented?
Phase 1 of continuous clearing and settlement on realisation in CTS was implemented on October 4, 2025.
📜 Read the original circular — full text as issued by RBI
RBI/2025-26/156
CO.DPSS.RLPD.No.S1039/04-07-001/2025-2026
December 24, 2025
The Chairman / Managing Director / Chief Executive Officer of
Banks participating in Cheque Truncation System /
National Payments Corporation of India
Dear Sir / Madam,
Continuous Clearing and Settlement on Realisation in Cheque Truncation System: Phase 2
A reference is invited to the circular CO.DPSS.RLPD.No.S536/04-07-001/2025-2026 dated August 13, 2025 on ‘Introduction of Continuous Clearing and Settlement on Realisation in Cheque Truncation System’. Phase 1 of the project was implemented on October 4, 2025.
2. In partial modification to the above-mentioned circular, the following are advised:
Implementation of Phase 2 is being postponed, until further notice, to allow more time for banks to streamline their operations.
The timing of the presentation session is modified to 09:00 AM to 03:00 PM and the timing of the confirmation session is modified to 09:00 AM to 07:00 PM.
3. This directive is issued under Section 10 (2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
Yours faithfully,
(Saurabh Nath)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2025-26/156 · issued 24 Dec 2025. The plain-English explanation above is BankPulse’s own independent summary.
Use the postponement period to review and streamline cheque processing operations for Phase 2 readiness.
Communicate the revised timings and postponement to relevant operations, IT, and clearing teams.
💻 IT / Systems
Update internal systems and staff training materials to reflect the new presentation (9 AM–3 PM) and confirmation (9 AM–7 PM) session timings.
📜 Compliance
Monitor future RBI circulars for the new Phase 2 implementation date.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an IT/Systems lead at a bank this circular applies to (Banks participating in Cheque Truncation System, National Payments Corporation of India, Clearing and settlement operations teams, Cheque processing and back-office staff), your first concrete step on “CTS Phase 2 Postponed, Session Timings Revised” is: “Update internal systems and staff training materials to reflect the new presentation (9 AM–3 PM) and confirmation (9 AM–7 PM) session timings.” (RBI issued this 24 Dec 2025).
Action required: Update internal systems and staff training materials to reflect the new presentation (9 AM–3 PM) and confirmation (9 AM–7 PM) session timings.
Action required: Use the postponement period to review and streamline cheque processing operations for Phase 2 readiness.
Action required: Communicate the revised timings and postponement to relevant operations, IT, and clearing teams.
Action required: Monitor future RBI circulars for the new Phase 2 implementation date.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13232&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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