2012 onwards validity of cheque, draft etc will be reduced to three month.
Currently the validity of cheques and drafts is six months and this is been misused by peoples. In order to prevent this misuse the Reserve bank of India had taken this decision.
If a cheque is issued in a date it can be encashed or deposited within 6 month and people are using these cheques as guarantee in transactions illegaly.
In order to avoid or prevent this RBI had instructed to Bank about the reducing of validity from 6 month to 3 month.
In order to avoid or prevent this RBI had instructed to Bank about the reducing of validity from 6 month to 3 month.
Cheques cannot be deposited in bank after 3 months from the date of issue from April 2012 onwards and if any cheque is presented for payment it will be returned and cannt be deposited.
The validity will be printed in the Cheque and Draft so that the user of cheque will be aware of it. RBI had instructed all the Bank inorder to inform this to their customers.
Banks are planning to make all the transaction through Electronic by withdrawing cheque facility which helps to make the transactions easily and time is saved.
Paper work will be less in electronic transfer and money will be transferred instantly. Collection of outstation cheque take lot of time and electronic transfer using RTGS and NEFT id quick and easy.
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