CHANGE IN VALIDITY OF CHEQUE FROM 01-04-2012
We, at Cogzidel would like to inform our readers that RBI has issued a notification regarding validity of cheques. Currently cheques issued are valid for a period of 6 months from the date of the cheque. The notification states that the validity period of cheques shall be reduced from 6 months to 3 months with effect from 01st April 2012. Therefore, cheques that are more than 3 months old shall not be honoured by banks from the 01st of April 2012
For instance, if a cheque is dated 01-05-2012, it will be necessary to encash the same on or before 31-07-2012. The cheque will not be honoured after 31-07-2012.
The notification has been reproduced below:
“As per the recent RBI Notification No RBI/2011-12/251 DBOD.AML BC.No.47/14.01.001/2011-12 dtd. 4th Nov 2011, the RBI has instructed the member banks that, from 01.04.2012 onwards, the Cheques bearing dates more than 3 months will not be paid by the banks. This is being done to curb the practice of circulating the same like cash for 6 months. At present these instruments are being honoured by the banks for a period of 6 months from the date in the instrument”