Module: General Practice
Q34: Effective January 3, 2026, the Reserve Bank of India implemented "Phase 2" of the Continuous Clearing System for cheques. What is the mandatory "Confirmation Window" for drawee banks under this specific phase?
✅ Correct Answer: B
Under the "Continuous Clearing" framework (Phase 2) which became active on January 3, 2026, the Reserve Bank of India moved away from fixed batch processing to a near-real-time model.
For cheques presented during the business window (10:00 AM to 4:00 PM), the drawee bank is mandated to confirm payment or return the instrument within T plus 3 clear hours (where T is the time of presentation). If the drawee bank fails to provide a status update within this specific 3-hour window, the system triggers a "Deemed Approval," automatically settling the funds in favor of the presenting bank to ensure faster credit to the beneficiary.
For cheques presented during the business window (10:00 AM to 4:00 PM), the drawee bank is mandated to confirm payment or return the instrument within T plus 3 clear hours (where T is the time of presentation). If the drawee bank fails to provide a status update within this specific 3-hour window, the system triggers a "Deemed Approval," automatically settling the funds in favor of the presenting bank to ensure faster credit to the beneficiary.