The Reserve Bank of India has indefinitely postponed Phase-2 of the Continuous Cheque Clearing System, citing the need to provide banks with additional time to strengthen operational readiness and streamline internal processes. The decision reflects a cautious regulatory approach aimed at preserving stability and reliability in India’s payment and settlement systems.
India’s cheque clearing framework operates under the Cheque Truncation System (CTS), which replaces physical cheque movement with image-based processing. Introduced initially in 2010 and expanded nationwide by 2013, CTS has significantly improved efficiency, reduced costs, and strengthened fraud controls. Building on this founda
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