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What is the validity period for cheques and bank drafts in India from 1" April 2012? 

What is the validity period for cheques and bank drafts in India from 1" April 2012?  Correct Answer 3 months from the date of issue

The correct answer is 3 months from the date of issue.

Key Points

  • The validity period for cheques and bank drafts in India from 1" April 2012 is 3 months from the date of issue.
  • As per RBI guidelines, with effect from April 1, 2012, the validity period of Cheques, Demand Drafts, Pay Orders, and Banker's Cheques will be reduced from 6 months to 3 months, from the date of issue of the instrument.
  • When the period of validity ends, the check becomes Stale. Such cheques cannot be submitted to the bank for payment. And if they are submitted for payment, they will be dishonored by the bank.

Additional Information

  •  A bank draft is a payment instrument that is issued by the bank at the request of the payer.
  • A cheque is issued by an account holder of the bank ordering the bank to make a specific payment to the person specified, or to the bearer of the cheque.

Related Questions

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