Governor Shaktikanta Das announced during the Monetary Policy Committee (MPC) meeting on Thursday that the Reserve Bank of India (RBI) has proposed speeding up cheque clearance to a few hours. As per Business Today, This change involves transitioning from the current batch processing system, which takes up to two working days, to a continuous clearing system with ‘on-realisation-settlement’ in the Cheque Truncation System (CTS). This update aims to clear cheques within hours on the day of presentation, benefiting both payers and payees by accelerating cheque payments.
In addition, Das revealed an increase in the UPI transaction limit for tax payments from ₹1 lakh to ₹5 lakh per transaction to further ease tax payments. He also introduced ‘delegated payments’ in UPI, allowing a primary user to authorize a secondary user to make UPI transactions up to a set limit from the primary user’s bank account without the secondary user needing a separate linked bank account.
