Saturday 24 March 2012

Validity of cheques, drafts cut to 3 months



Come April 1, 2012, your cheques and bank drafts will have a life of just three months instead of the earlier six. Reserve Bank of India has changed validity of Cheque/Drafts/Pay orders/Bankers Cheque from 6 months to 3 months vide their notification no RBI/2011-12/251 DBOD AML BC.No.47/14.01.001/2011-12 dated 4th November 2011. Still it is notification to implement to those instructions those have been issued on or after w.e.f. 01-April-2012. t has been brought to its notice by the government that some persons were taking undue advantage of the six month validity of cheques, drafts, pay orders, banker's cheques by circulating them like cash for this period, RBI had said in a notification earlier. 

According to a senior banker, the three-month validity period is a good enough time period for instrument . A development that RBI thinks will help mitigate frauds related to such instruments. 

thanks to satirur.blogspot

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