RBI Postpones Phase 2 of CCSR Under Cheque Truncation System

Circular No. CO.DPSS.RLPD.No.S1039/04-07-001/2025-2026, Dated 24.12.2025

1. Regulatory Background

The Reserve Bank of India (RBI) has issued a circular in partial modification of its earlier directions relating to the introduction of Continuous Clearing and Settlement on Realisation (CCSR) under the Cheque Truncation System (CTS).

The modifications are aimed at providing banks with additional time to stabilise and streamline operational processes before the next phase of implementation.

2. Postponement of Phase 2

RBI has announced that:

• Phase 2 of the Continuous Clearing and Settlement on Realisation project has been postponed
• The postponement is until further notice

Regulatory Rationale

The deferment has been granted to:

• Allow banks to fine-tune internal workflows
• Address operational, technological, and reconciliation challenges
• Ensure smoother and more robust implementation of subsequent phases

3. Revised CTS Session Timings

The circular also revises the daily session timings under the Cheque Truncation System.

• Presentation Session – Revised timing: 09:00 AM to 03:00 PM
• Confirmation Session – Revised timing: 09:00 AM to 07:00 PM

These revised windows are intended to provide greater operational flexibility and improve processing efficiency across banks and clearing participants.

4. Applicability

• The revised timelines and session timings apply to all banks and participants operating under CTS
• Existing operational procedures will continue, subject to the updated session timings
• Phase 2–related requirements will remain on hold until RBI issues further instructions

5. Regulatory Intent

The RBI’s decision seeks to:

• Ensure operational readiness before scaling up continuous clearing
• Minimise settlement risks and processing disruptions
• Provide adequate transition time to regulated entities
• Maintain the integrity and efficiency of cheque-based payment systems

6. Implications for Banks

Banks should:

• Update internal CTS operating manuals and system configurations to reflect revised session timings
• Re-align staffing, reconciliation, and back-office processes
• Pause Phase 2–specific implementation activities until further RBI communication
• Monitor RBI circulars for future rollout timelines

7. Key Takeaway

RBI has deferred Phase 2 of Continuous Clearing and Settlement on Realisation under CTS and revised session timings—with the presentation window now from 09:00 AM to 03:00 PM and the confirmation window from 09:00 AM to 07:00 PM—to support smoother operational readiness across banks.

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