Cheque validity for 3 months to begin from April1, 2012

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Cheque validity for 3 months to begin from April1, 2012
Now all cheques, bank drafts and pay orders will have validity of three months with effect from April 1, 2012. This is applicable across all banks in India.

The validity period has been reduced from six months to three months.

The move to reduce the time period for expiry of cheques was initiated due to fears that people were taking advantage of the longer tenure of six months of the cheques vlaidity and misusing them.

 "The Reserve Bank of India is satisfied that in public interest and in the interest of 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," a release from the central Bank states.

Now people have to ensure before that they need to tender the cheques or similar instruments within three months.

Read more about: rbi, banks
Story first published: Friday, March 30, 2012, 11:56 [IST]
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