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Saturday, March 24, 2012

Cheques valid for 3 months from April 1

Bankers' cheques and other monetary instruments will have only a three-month validity beginning April 1, 2012, instead of the existing six months, a Reserve Bank of India (RBI) communique has said.

The change is a consequence of an RBI notification on November 4, 2011.

Cheques, drafts and pay orders will have a validity for three months from the date they've been drawn. Those having cheques and other monetary instruments with six-month validity before April 1 will have to remit them before this date, when the expiry of the validity will be reduced to three months.

After April 1, these instruments will be valid subject to their adherence to the new 3-month rule.

Source:-The Times of India

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