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Cheques and Drafts to be valid for three months from today

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Monday, 02 April 2012 14:44

Published on Monday, 02 April 2012 14:44

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Gujarat Global News Network, New Delhi

The new decision by RBI to reduce the validity of cheques and drafts to three months has come into effect from today. Hence from today banks will stop honouring cheques and drafts if they are not presented within three months of the date of issue as against six months earlier. 

The RBI has issued a directive to this effect with a view to mitigating frauds related with such instruments. The directive followed complaints that some persons were taking undue advantage of the six-month validity period and circulating these instruments like cash. 

The RBI had said, "In public interest and in the interest of the banking policy, it is necessary to reduce the period within which cheques/drafts/pay orders/banker's cheques are presented for payment from six months to three months from the date of such instrument."

For news in Hindi see our Hindi daily Chaupal Chronicle 

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