Payment of Cheques/Drafts/Pay Orders/Banker’s Cheques – Validity period reduced to 3 months from 6 months.


Today RBI vide its Notification No.RBI/2011-12/251,DBOD.AML BC.No.47/14.01.001/2011-12 dt.

November 4, 2011, has announced a major change in the validity period of Cheques/Drafts/Pay Orders/Banker’s Cheques.

The current practices is that the Cheques/Drafts/Pay Orders/Banker’s Cheques, are valid for a period of 6 months from the date of the instrument.

In practice, these instruments were being circulated in the market like cash for six months, by some persons taking undue advantage of the of the said practice of banks of making payment of cheques/drafts/pay orders/banker’s cheques presented within a period of six months from the date of the instrument.

This was brought to the notice of Reserve Bank of India, by Government of India.

Hence in public interest,  Reserve Bank has reduced the period  within which cheques/drafts/pay orders/banker’s cheques are presented for payment from six months to three months from the date of such instrument.

Accordingly, Reserve Bank hereby has directed that with effect from April 1, 2012, banks should not make payment of cheques/drafts/pay orders/banker’s cheques bearing that date or any subsequent date, if they are presented beyond the period of three months from the date of such instrument.

As there are 5 months, before this notification is effective, all the participants in the banking channel, have sufficient time to get familiarised with it.

To me, this is one more step to migrate folks from paper-based to electronic-based payment modes.  

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