Module: | Continuous Clearing (CCSR) & Penalties
Q21: Consider the following statements regarding the "CCSR" framework introduced by the RBI in August 2025 to replace the legacy batch clearing system:
1. CCSR stands for "Continuous Clearing & Settlement on Realisation".
2. Under this system, if a drawee bank fails to send a "Pay or Return" decision before the "Item Expiry Time", the cheque is automatically returned unpaid.
3. The system triggers "Auto-Approval" (Deemed Paid) for any cheque where the decision deadline is missed.
2. Under this system, if a drawee bank fails to send a "Pay or Return" decision before the "Item Expiry Time", the cheque is automatically returned unpaid.
3. The system triggers "Auto-Approval" (Deemed Paid) for any cheque where the decision deadline is missed.
✅ Correct Answer: B
CCSR stands for "Continuous Clearing & Settlement on Realisation" (Statement 1). It replaces batch clearing with a continuous flow.
A critical feature is "Auto-Approval": if the drawee bank misses the decision deadline ("Item Expiry Time"), the system treats the cheque as "Deemed Paid" (Statement 3). Statement 2 is incorrect because the default action for a missed deadline is payment, not return.
A critical feature is "Auto-Approval": if the drawee bank misses the decision deadline ("Item Expiry Time"), the system treats the cheque as "Deemed Paid" (Statement 3). Statement 2 is incorrect because the default action for a missed deadline is payment, not return.