Stale cheque to be written off
This query is : Resolved
Kamesh Gupta
(Querist)
03 May 2013
What is the time limit for stale cheque to be written off from the books, is it the cheque issuance date or the date when cheque becomes stale.
Also the relevant section which defines the same.
Also the relevant section which defines the same.
CA Sourabh Agarwal
(Expert)
13 May 2013
RBI guidelines says Cheque is stale if not presented for payment within three months from date written on cheque.
Kamesh Gupta
(Querist)
14 May 2013
Need to confirm here, when can stale cheque be written off from the books-
cheque issuance date or
when trfd to stale cheque
cheque issuance date or
when trfd to stale cheque
CA Sourabh Agarwal
(Expert)
14 May 2013
after three months, which is when trfd to stale cheque.
Kamesh Gupta
(Querist)
14 May 2013
Thanks for the confirmation.
Also confirm which section governs the same.
Also confirm which section governs the same.
25 July 2025
Regarding **writing off stale cheques from the books**, here’s a clear summary:
---
### 1. **When does a cheque become stale?**
* As per **RBI guidelines**, a cheque becomes **stale if not presented for payment within 3 months** from the **date written on the cheque**.
---
### 2. **From which date should the cheque be written off?**
* The **date when the cheque becomes stale** (i.e., 3 months from the cheque issuance date) is the logical point to consider it stale and to take appropriate accounting action.
* **You should write off the cheque only after it has become stale** — not on the issuance date.
---
### 3. **Relevant Law / Section**
* The **Negotiable Instruments Act, 1881** governs cheque payments in India.
* While the Act does not specifically prescribe a "write-off" time limit, **Section 138** deals with dishonour of cheques and penalties.
* RBI guidelines and banking norms define stale cheques operationally.
* For accounting purposes, **there’s no specific section defining write-off timing**, but **generally accepted accounting principles** (GAAP/IND AS) and **company’s internal policy** guide the timing.
---
### 4. **Practical approach**
* After 3 months from cheque date, if the cheque is unpresented and no collection is expected, you may:
* Classify the cheque as stale.
* Reverse the cheque amount from bank reconciliation statements.
* Write it off as bad debt or adjust as per your accounting policy.
---
If you want, I can help draft an accounting journal entry for writing off stale cheque or a policy note. Would you like that?
---
### 1. **When does a cheque become stale?**
* As per **RBI guidelines**, a cheque becomes **stale if not presented for payment within 3 months** from the **date written on the cheque**.
---
### 2. **From which date should the cheque be written off?**
* The **date when the cheque becomes stale** (i.e., 3 months from the cheque issuance date) is the logical point to consider it stale and to take appropriate accounting action.
* **You should write off the cheque only after it has become stale** — not on the issuance date.
---
### 3. **Relevant Law / Section**
* The **Negotiable Instruments Act, 1881** governs cheque payments in India.
* While the Act does not specifically prescribe a "write-off" time limit, **Section 138** deals with dishonour of cheques and penalties.
* RBI guidelines and banking norms define stale cheques operationally.
* For accounting purposes, **there’s no specific section defining write-off timing**, but **generally accepted accounting principles** (GAAP/IND AS) and **company’s internal policy** guide the timing.
---
### 4. **Practical approach**
* After 3 months from cheque date, if the cheque is unpresented and no collection is expected, you may:
* Classify the cheque as stale.
* Reverse the cheque amount from bank reconciliation statements.
* Write it off as bad debt or adjust as per your accounting policy.
---
If you want, I can help draft an accounting journal entry for writing off stale cheque or a policy note. Would you like that?
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