Summary of the Policy (backed by sources):

RBI is transitioning the Cheque Truncation System (CTS) to a continuous clearing model to process cheques within hours instead of up to two days.
www.ndtv.comIndia Today

Phase 1 (from October 4, 2025) mandates real-time scanning (10 AM–4 PM), with drawee banks confirming by 7 PM, else auto-approval occurs.
www.ndtv.comBusiness Today

Phase 2 (from January 3, 2026) speeds up confirmation to within 3 hours; presenting banks must then credit the account within 1 hour of settlement.
www.ndtv.comET Now

This reform promises faster fund availability, lower settlement risk, and smoother cheque transactions nationwide. Banks have been instructed to prepare and inform customers.