K. Sunil Kumar, Architha Gangone, Divya Thatipamula, Akshitha Mutupuri,Ganesh Kapuganti 02 7(1) Traditional cheque clearance systems are plagued by issues such as processing delays high operational costs and limited transparency leading to inefficiencies and increased risk of fraud To overcome these limitations this paper proposes a BlockchainBased Cheque Clearance System Using Ethereum that aims to transform the banking sector by providing a secure transparent and efficient framework for cheque transactions between banks and users The system utilizes Ethereums decentralized blockchain architecture and smart contracts to automate the clearance process enabling faster and tamperresistant transactions Historically cheque processing involved manual and centralized operations vulnerable to errors and fraudulent activities often requiring interbank coordination that introduced delays and inconsistencies While various digital methods have attempted to modernize this process they remained centralized and failed to establish trust and transparency This research leverages the decentralized immutable and transparent nature of blockchain technology to address these longstanding challenges The proposed system enhances security ensures data integrity and reduces human involvement by recording each transaction on the blockchain enabling realtime verification and clearance via smart contracts By eliminating the need for a central authority the system becomes more resilient reliable and trustworthy Overall this approach aims to revolutionize cheque clearance by delivering a seamless auditable and secure solution for modern banking Copyright (c) Journal of Science Engineering Technology and Management Science. All rights reserved 2026