BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -As per guidelines of Reserve Bank of India (RBI), the validity period of cheque from the date of issue is 3 months. These guidelines came into effect from April 1, 2012. Prior to this guideline the validity period of cheques was 6 months.

Detailed explanation-2: -Section 138 NI Act: No liability for accused if cheque is presented after 3 months [Read the Order] Delhi High Court has quashed a cheque bounce case when it found that the cheque was presented to the bank after 3 months which is the validity period as per notification of RBI.

Detailed explanation-3: -Revised validity period of Cheques, Drafts, Pay Orders & Banker’s Cheques. As per RBI guidelines, with effect from April 1, 2012, the validity period of Cheques, Demand Drafts, Pay Orders and Banker’s Cheques will be reduced from 6 months to 3 months, from the date of issue of the instrument.

Detailed explanation-4: -As per section 138, proviso N.I. Act, cheque has to be presented within the period of three months from the date of its drawn and thus, after excluding 25th January, 2015, three months period has to be reckoned, cheque having being presented on 24.04. 2015 was well within the stipulated period of three months.