Cheques, Drafts Validity Cut Short to 3 Months

Posted In Awareness, India - By NitiN Kumar Jain On Sunday, March 25th, 2012 With 0 Comments






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Soon from 1st April 2012, validity of cheques and drafts will be 3 months from the data of issue cut short from 6 months earlier by  Reserve Bank of India (RBI). In a notification dated 4th November 2011, the validity of all cheques, drafts, pay orders and banker’s cheques has been reduced to 3 months only from 6 months.

All such instruments, from 1 April 2012, should be presented within 3 months of the date on the instrument, for successful clearance. Needless to say that instruments presented after this period of 3 months will not be cleared.

This change is applicable across all banks in India, and covers all instruments that are issued.

RBI has also made it mandatory to print the change on cheques and drafts that will be issued from April 1, 2012, for awareness of general public.