RBI Governor: The Reserve Bank of India (RBI) has proposed to reduce the check clearing cycle from T+1 day to within a few hours. Governor Shaktikanta Das gave this information during the statement of the Monetary Policy Committee on 8 August.
The check truncation system currently processes checks with a clearing cycle of 2 working days. For this, a batch clearing approach is adopted, it will be changed to continuous clearing. That is, the process of check clearing will continue continuously during business hours.
RBI Governor: The check is scanned, presented and passed
In the check truncation system, the check is scanned, presented and passed. RBI will soon issue a detailed guideline on this new system.
RBI Governor: Account holders will get funds within a few hours
Continuous clearing is expected to increase check transaction efficiency. Customer experience will also increase, as account holders will get funds within a few hours. This change is expected to reduce the uncertainties associated with check-based transactions.
What is Check Truncation System?
Check Truncation System is a process of clearing the check. In this, the physical check issued does not have to move from one place to another, but it is cleared by taking a photo of the check. Actually, in the old system, the check is sent from the bank where it is presented to the paying bank branch. In this way it takes time to clear.
No change in interest rates for the 9th consecutive time
The Reserve Bank of India (RBI) has not changed the interest rates for the 9th consecutive time. RBI has kept the interest rates unchanged at 6.5%. That is, loans will not become expensive and your EMI will also not increase. RBI last raised the rates by 0.25% to 6.5% in February 2023.
RBI Governor Shaktikanta Das gave information about the decisions taken in the Monetary Policy Committee (MPC) meeting going on from August 6 today i.e. Thursday. This meeting is held every two months. RBI had earlier not raised interest rates in the meeting held in June.
The RBI MPC has six members. It comprises both external and RBI officials. Along with Governor Das, Rajiv Ranjan, an RBI official, serves as executive director and Michael Debabrata Patra is deputy governor. Shashank Bhide, Ashima Goyal and Jayant R Varma are external members.
