Payment of Cheques/Drafts/Pay Orders/Banker's
Cheques
In India, it has been the usual practice among bankers
to make payment of only such cheques and drafts as
are presented for payment within a period of six
months from the date of the instrument. However,
Reserve Bank is satisfied that in public interest and
in the interest of banking policy it is necessary to
reduce 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, in exercise of the powers conferred by
Section 35A of the Banking Regulation Act, 1949,
Reserve Bank vide notification no. RBI/2011-12/251,
DBOD.AML BC.No.47/14.01.001/2011-12 dated
November 4, 2011 directs 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.
RBI instructed that the banks should ensure strict
compliance of these directions and notify the holders
of such instruments of the change in practice by
printing or stamping on the cheque leaves, drafts, pay
orders and banker's cheques issued on or after April
1, 2012, by issuing suitable instruction for
presentment within the period of three months from
the date of the instrument.
courtesy: icai snl
