RBI has reduced the validity of Cheques/Drafts/Pay Orders/Bankerís Cheques to 3 months from the existing six months from April 1, 2012

In India, cheques and drafts can be presented for payment within a period of six months from the date of the instrument.

Reserve Bank of India has found that some persons are taking undue advantage of the said practice of banks of making payment of cheques/drafts/pay orders/bankerís cheques presented within a period of six months from the date of the instrument as these instruments are being circulated in the market like cash for six months.

Reserve Bank has decided in public interest and in the interest of banking policy to reduce the period within which cheques/drafts/pay orders/bankerís cheques are presented for payment from six months to three months from the date of such instrument.



Accordingly, Reserve Bank of India has directed that with effect from April 1, 2012, banks should not make payment of cheques/drafts/pay orders/bankerís cheques bearing that date or any subsequent date, if they are presented beyond the period of three months from the date of such instrument.

Banks have been instructed to ensure strict compliance of these directions and notify the holders of such instruments of the change in practice by printing or stamping on the cheque leaves, drafts, pay orders and bankerís cheques issued on or after April 1, 2012, by issuing suitable instruction for presentment within the period of three months from the date of the instrument.

NOTE: This sudden decision will create operational issues and large number of ciustomers will loose out due to ignorance. Such sweeping change which affect common man should be taken only after creating awareness among the masses.



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