New Delhi: The Reserve Bank of India has announced the reduction of the duration of validity of cheques and drafts from six months to three months.
Starting 1st April next year, customers will have to present the cheque and bank drafts for disbursement of cash within three months.
RBI explained the reason for cutting the validity duration of cheques and drafts in a notification. The federal bank said that it had become commonplace to find people taking undue advantage of the six-month validity of these instruments by circulating them in the market like cash for six months.
For customer awareness, banks have been asked to print the change on cheques and drafts that will be issued from April 1, 2012.
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