New Continuous Clearing System

The new continuous clearing system, for cheque clearance has been launched on October 4, 2025. The new system was intended to speed up clearance from one to two business days to same-day settlement, but disturbances are occurring because of issues like poor-quality cheque scans, technical glitches, and insufficient staff training. This has led to some cheques being rejected or taking longer to clear, negating the intended benefit of the upgrade.

Yogesh Bang, President ABPLTA, stated that the system launched just before Diwali has shaken the business community. Traders from across India — including Nagpur, Bhopal, and Delhi — have complained to Finance Minister Nirmala Sitharaman, as this is a period when funds are in high demand.

He said that in many places, cheque clearance has taken as long as 10 to 15 days. As a result, traders who had promised timely payments to their manufacturers failed to meet their commitments.

His suggestion was that either this new system should have been launched after the festive season, or an advance warning should have been issued indicating that such technical difficulties might occur.

Causes of the disturbance

Insufficient staff training: Many bank employees were not adequately trained on the new process, which requires scanning and transmitting images the same day.

Poor image quality: Rushed scanning has led to issues with blurred or incomplete cheque images, which are rejected by the system.

Technical glitches: Problems with system integration and data capture have occurred, where details or account numbers are not read correctly.

Inconsistent data capture: The new system has inconsistencies in capturing data from the cheques.

Logistical challenges: Non-metro branches are experiencing more acute problems as staff are still adjusting to the new process.

Expected outcomes

The system is expected to stabilize as banks work on resolving these issues.

The goal of the new system is to enable funds to reach beneficiaries within hours, a significant improvement over the old system.

The next phase of the system, starting January 2026, will further shorten the response time for banks to confirm a cheque.

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