What is the average time to clear a cheque in the USA after the introduction of Check21?

The correct answer is one day, reflecting the efficiency gains introduced by the Check 21 Act. Check 21, which came into effect in 2004, allows banks to create digital images of checks and process them electronically rather than relying solely on physical check movement. This fundamental shift significantly reduced the time required for check clearance.

Prior to Check 21, the process of clearing checks could take several days, as it involved transporting physical checks between banks. With the introduction of electronic image processing, the average time to clear a cheque decreased dramatically. Today, many checks can be processed the same day they are deposited, leading to the general affirmation that they clear in about one day. This rapid processing time has improved the overall efficiency of payment systems and enhanced the liquidity of funds in the banking system.