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RBI asks banks not to honour cheques beyond 3 months

RBI asks banks not to honour cheques beyond 3 months
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First Published: Fri, Nov 04 2011. 07 55 PM IST

Updated: Fri, Nov 04 2011. 07 55 PM IST
Mumbai: Banks should not make payment of cheques, drafts, pay orders or banker’s cheques presented beyond a period of three months from the date of issue, compared with six months currently, the Reserve Bank of India said on Friday.
The rule is effective from 1 April, 2012.
“Some persons are taking undue advantage of the said practice...as these instruments are being circulated in the market like cash for six months,” said the RBI in a notification on its website.
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First Published: Fri, Nov 04 2011. 07 55 PM IST
More Topics: RBI | Cheque | Banks | Pay Orders | Drafts |