When the continuous clearing process is implemented, the time it takes to clear checks will decrease from T+2 days to a few hours.
Shaktikanta Das, the governor of the RBI, suggested switching CTS from its current batch processing method to continuous clearing.
Currently, deposited checks are gathered and processed in batches or groups during designated times of the day, which results in a settlement cycle that can take up to two working days (T+2). For both parties, this entails a lengthier waiting period and possibly a higher settlement risk.
