Same-Day Cheque-Clearance Glitches: NPCI Says Most Teething Issues 'Resolved'

The National Payments Corp. has resolved most technical and operational glitches that arose from the cheque clearing system's transition from the traditional batch processing model (T+1) to a continuous clearing system (T+0), as per NPCI's latest release.

The central clearing system has remained stable since Monday, according to the release. The new system, aimed at enabling same-day cheque clearance, was officially implemented on Oct. 4.

Since the rollout, the system has already processed and cleared a total of 1.49 crore instruments, with a cumulative value of Rs 8,49,557 crore, through the centralised platform.

However, the implementation was not without its share of initial hurdles, indicated the release. During the early days, both the central system run by the NPCI and the participating banks experienced teething issues, resulting in delays in clearing, crediting customer accounts, and a high volume of returns.

The NPCI is continuing to work closely with banks to address any residual issues, with a shared goal of ensuring seamless same-day credit for cheques presented under the new framework.

In a letter reviewed by PTI, a bank employees' union had stated that the new system was rolled out without adequate operational preparedness, leading to major challenges for staff. Employees are reportedly grappling with software issues and insufficient training, which have led to extended work hours and even weekend shifts.

"This is negatively impacting customer service, with instances of debited accounts not reflecting corresponding credits, causing confusion and dissatisfaction," the letter said.

The union also raised concerns about transaction reconciliation, warning that continued system stress could result in financial losses for banks. It also criticised the timing of the rollout, saying that launching the system during the Diwali festive season was further straining both systems and staff.

(With PTI inputs)