Bankers’ cheques and other monetary instruments will have only a three-month validity beginning from Dt. 1st April 2012, instead of the existing Six months, a Reserve Bank of India communiqué has said. This change is a consequence of an RBI Notification issued on Dt. 4th November 2011. Cheques, drafts and pay orders will only be valid for three months from the date that they have been drawn. Those having cheques and other monetary instruments with six-month validity before 1 April will have to remit them before this date, or their expiry will be reduced to three months.
Further the RBI has directed all Banks to notify the account holders of this change in practice by printing or stamping on the Cheque leaves, drafts, pay orders and bankers cheques issued on or after 1st April 2012, by issuing suitable instructions for presentment within 3 months from the date of the instrument.
The RBI had to take this step as it found that some persons were misusing the 6 months criteria by circulating Cheques/ drafts/ pay orders/ bankers cheques in markets like cash for Six Months.