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Special CTS Clearing on Oct 3, 2025 for Continuous Settlement Transition

Current · Source: Reserve Bank of India · RBI/2025-26/81 · issued 26 Sep 2025 · ~2 min read
Quick answerRBI mandates special clearing in Cheque Truncation System on October 3, 2025, with modified timings, to facilitate the transition to continuous clearing starting October 4. Banks must use specific clearing type '99' and session numbers '21' (presentation) and '22' (return) for all instruments.
The rule, in the simplest words
How it plays out — a real example

Ravi, a payments & clearing officer in Indore, logs into his bank's system on October 3, 2025, and sees a pop-up reminding him to use clearing type '99' and session '21' for all cheques he sends for clearing. He double-checks that his branch has enough funds in the settlement account to cover any returned cheques, then processes a customer's cheque for a gold loan repayment, knowing the special session will settle it before the new continuous clearing starts tomorrow.

What changed

RBI has scheduled a special clearing session in CTS on October 3, 2025, replacing regular clearing for that day. The session includes a return session for October 1 presentations (8-10 AM), a special presentation session (11 AM-3 PM), and a special return session (5-8 PM). No regular CTS sessions will run on October 3.

What it means for you

Banks must prepare for a one-day operational shift to special clearing on October 3, ensuring all instruments are processed using the designated clearing type and session numbers. This is a critical step before the continuous clearing and settlement on realisation (phase 1) goes live on October 4. Settlement obligations will arise from both presentation and return sessions, so banks need adequate balances in their settlement accounts.

What you must do

Who it affects

All banks participating in Cheque Truncation System, National Payments Corporation of India, Sponsor banks and their sub-members, Bank operations and settlement teams

❓ Common questions

Why is special clearing needed on October 3, 2025?

To facilitate the transition to continuous clearing and settlement on realisation in CTS, which begins phase 1 on October 4, 2025. The special clearing ensures a smooth handover by processing pending items from October 1 and clearing all instruments on October 3.

What happens if we use a different clearing type or session number on October 3?

Instruments presented with any clearing type other than '99' or session numbers other than '21' (presentation) and '22' (return) will not be attached to the special clearing session and may not be processed.

Will there be any regular CTS sessions on October 3?

No. After the return session for October 1 presentations closes at 10 AM, no regular clearing sessions will run on October 3. Only special clearing sessions will be operational.

📜 Read the original circular — full text as issued by RBI
RBI/2025-26/81 CO.DPSS.RLPD.No.S680/04-07-001/2025-2026 September 26, 2025 The Chairman / Managing Director / Chief Executive Officer of Banks participating in Cheque Truncation System/ National Payments Corporation of India Madam / Dear Sir, Special Clearing in Cheque Truncation System on October 3, 2025 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’ wherein it has been advised that phase 1 shall be implemented on October 4, 2025. 2. To facilitate transition to continuous clearing, it has been decided to modify session timings and conduct special clearing in Cheque Truncation System (CTS) on October 3, 2025 as detailed below: Day
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2025-26/81 · issued 26 Sep 2025. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
🏦 Branch Manager
  • Communicate the special clearing schedule and operational changes to all relevant branches and sub-members.
⚙️ Operations
  • Update internal systems to accept clearing type '99' and session numbers '21' (presentation) and '22' (return) for all instruments on October 3.
  • Ensure sufficient settlement account balances to cover obligations from both special clearing sessions.
  • Verify that no regular CTS sessions are scheduled on October 3 and that all instruments are routed to special clearing.
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 Operations officer at a bank this circular applies to (All banks participating in Cheque Truncation System, National Payments Corporation of India, Sponsor banks and their sub-members, Bank operations and settlement teams), your first concrete step on “Special CTS Clearing on Oct 3, 2025 for Continuous Settlement Transition” is: “Update internal systems to accept clearing type '99' and session numbers '21' (presentation) and '22' (return) for all instruments on October 3.” (RBI issued this 26 Sep 2025).

  1. Circular: RBI/2025-26/81 -- Special CTS Clearing on Oct 3, 2025 for Continuous Settlement Transition
  2. Issued: 26 Sep 2025
  3. Action required: Update internal systems to accept clearing type '99' and session numbers '21' (presentation) and '22' (return) for all instruments on October 3.
  4. Action required: Ensure sufficient settlement account balances to cover obligations from both special clearing sessions.
  5. Action required: Communicate the special clearing schedule and operational changes to all relevant branches and sub-members.
  6. Action required: Verify that no regular CTS sessions are scheduled on October 3 and that all instruments are routed to special clearing.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. 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.

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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12900&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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