Initial technical glitches have emerged in the new “Continuous Cheque Settlement System” launched by the RBI. NPCI stated that cheque settlements are being delayed due to issues in the systems of some banks, although most problems have been resolved. Customers have been urged to cooperate and maintain understanding.
NPCI’s plan: The Reserve Bank of India (RBI) had launched the new “Continuous Settlement System” for cheque processing from October 4, under which cheques are now cleared within a few hours. However, the National Payments Corporation of India (NPCI) reported that some technical issues arose in the initial phase of the system, causing delays for some customers. NPCI stated that 2.56 crore cheques worth ₹3.01 lakh crore have been successfully settled so far, and banks have been advised to deposit the amounts into customers' accounts on time. The institution has assured that all issues will soon be resolved, and the process will be made fully smooth.
Promise of Settlement in a Few Hours
The RBI had introduced a major change in the cheque clearing process on October 4. Previously, cheques were settled in batches, taking two days, but the new system was designed to complete the process within a few hours. Under this system, cheques deposited in a bank were to be settled on the same day so that customers' money could reach their accounts quickly. Initially, this was seen as a major relief for the common public.
NPCI Itself Acknowledges Initial Difficulties
NPCI has now clarified that the new continuous settlement system is currently experiencing some initial technical and operational issues. The institution stated that over 2.56 crore cheques, totaling more than ₹3,01,000 crore, have been settled since October 4. Despite this, some initial hurdles have been encountered in the systems of certain banks and the central settlement system.
NPCI said that we apologize to customers for this delay. The institution also stated that most problems have been resolved, and work is rapidly underway on the remaining issues to ensure all cheques can be settled on the same day.
How the New System Works
Under the new system, cheque settlement is now done on a real-time, continuous settlement basis rather than a batch process. As soon as a cheque is deposited, it reaches NPCI's central system digitally, where it is checked and confirmed. If everything is correct, the amount is transferred to the customer's account within a few hours. This change was considered a major technological advancement in the banking sector.
In the initial days of the new system's implementation, many customers faced delays in cheque clearing. In some cases, money was credited to accounts late even after depositing cheques. NPCI stated that this delay was mainly due to technical hurdles in banks' internal systems and processes. The institution added that as banks upgrade their systems, these problems are diminishing.
Instructions Given to Banks
In its statement, NPCI said that banks have been instructed to immediately credit the amounts of confirmed cheques to customers' accounts. The institution also added that it is continuously working in coordination with banks to ensure customers do not face any inconvenience.
The organization reported that all banks have been provided with positive or negative confirmation of cheque settlements so far, and all valid cheques have been successfully paid.
Performance So Far
NPCI stated that under the new system, crores of cheques have been successfully settled so far. This is a significant achievement in itself, as it proves that the technological change is moving in the right direction. The institution said that although some issues have arisen, most transactions are being completed smoothly.
What is NPCI's Role?
NPCI is the leading organization operating retail payment and settlement systems in the country. It was established by the Reserve Bank of India and the Indian Banks' Association (IBA). This institution operates services like UPI, RuPay cards, and the National Automated Clearing House. The new cheque settlement system was also developed by NPCI to make the banking system faster and more transparent.
