RBI asks banks not to honour cheques beyond 3 months

RBI asks banks not to honour cheques beyond 3 months

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.

“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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