Reserve Bank of India (RBI) Governor Shaktikanta Das at the Monetary Policy Committee (MPC) meeting on Thursday announced changes to the cheque-clearing process. The central bank kept the rates unchanged at the meeting.
At present, cheque clearing is done through the Cheque Truncation System (CTS), which operates in a batch processing mode and has a clearing cycle of up to two working days. To reduce the clearing cycle, RBI has proposed to introduce continuous clearing with ‘on-realisation-settlement’ in CTS.
With this, the RBI says that the cheques will be cleared within a few hours after it is presented at the bank. “This will speed up cheque payments and benefit both the payer and the payee,” the governor said in his speech.
Increased UPI limit for tax payment
The central bank has also proposed the enhancement of the transaction limit for Unified Payments Interface (UPI) transactions for tax payments from the current ₹1 lakh to ₹5 lakh.
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