Saturday, 24 March 2012

Validity Of Cheque/Draft/Pay Orders/Banker’s changed To 3 Months Instead Of 6 Months

From April 1st 2012 onwards validity of Cheque /Draft/Pay orders/ Banker's Cheque will be three months instead of 6 months.A circular issued by the Reserve Bank of India has asked all banks to implement the new rule from April 1, 2012. It has asked banks to notify holders of such instruments of the change in practice by printing or stamping on the cheque leaves, drafts, pay orders and banker's cheques issued on or after April 1, 2012,
The new rule come into force because that some unscrupulous people were circulating the cheques as cash for close to six months, thereby creating a tradeable instrument which was never intended under the RBI rules
Banking circles said the move could lead to some practical problems for individuals, particularly if they were not aware of the new rule that would come into effect next year. “People should not only present their cheque in time, but also ensure that if they are receiving a cheque from a company for a service rendered, the date should be checked,” a banker said.

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