The Reserve Bank of India (RBI) has implemented some key modifications in August 2025 in order to make banking quicker, secure, and more friendly to business. These amends have implications to the way banks conduct international trade, cheque clearing and financial guarantees. The following is a straightforward summary to clarify what is new, and how it could impact you.
1. Faster International Trade with Rupee Accounts
RBI has also done away with the prior approval requirement which was required to open a Special Rupee Vostro Account (SRVA) in favour of foreign banks2. These accounts assist in the settlement of import/ export payments in Indian Rupees as opposed to US Dollars or Euro.
Why it matters:
- Accelerates international trades
- Lessens the reliance of foreign currencies
- Increases the worldwide acceptability of Indian Rupee
2. Cheques Cleared Within Hours
RBI will introduce continuous cheque clearing with the Cheque Truncation System (CTS) through 24 hours continuous cheque clearing starting October 4, 2025. This will entail processing of cheques in real-time as opposed to being in batches.
What changes:
- Sending of cheques via scanning instantly
- Banks should verify payment at 7:00 PM
- More customers are able to receive faster access to funds.
3. Simplified Rules for Cross-Border Guarantees
RBI has suggested new guidelines under Foreign Exchange Management Act (FEMA) as a move to facilitate easy issuance and management of guarantees on international transactions by the businesses.
Key updates:
- The greater number of guarantee types permissible without RBI authorization
- Any assurances should be to RBI
- Provided definitions of such terms as the creditor, surety, etc.
This will assist Indian firms in their business transactions in foreign countries with less stalls and more clearly.
What Banks Must Do
Banks are now expected to:
- Adhere to latest KYC (Know Your customer) standards
- Inform the customers on new cheque clearing deadlines
- To ensure the adaptation of FEMA and RBI mandates with the handling of foreign accounts and guarantees
Final Thoughts
These RBI updates will enable banking to be less cumbersome and less time consuming to the individuals and businesses at large. Depositing a cheque, international trade transactions, and financial guarantees are just some of the transactions where time saving and reduced paperwork are the focus of these changes.
In case you are confused as to how such rules may impact on your account or business you should contact your bank or visit the official press release site of RBI