BANKING AFFAIRS

Detailed explanation-1: -This means your financial institution cannot cash or deposit the cheque until that date has arrived. Stale-dated Cheque – This is a cheque that is still uncashed more than 6 months after it’s written. At this point, it is a stale cheque, and a financial institution will not cash it.

Detailed explanation-2: -Stale Checks: A check, other than a certified check, that is presented for payment more than six months after its date. As a general rule, a bank is not obligated to pay a stale check upon presentment, although it may do so.

Detailed explanation-3: -An issued cheque is negotiable for six months plus one day from the date written on it, after which it becomes stale-dated. Stale-dated cheques have an increased chance of being returned by the issuing bank, and therefore financial institutions may not accept them.

Detailed explanation-4: -A post-dated cheque is a type of cheque that bears a future date, rather than the current date. The funds written on the cheque will not be transferred to the payee until the specified date has passed. The cheque remains valid for a period of three months from the date it was written by the drawer.

Detailed explanation-5: -A stale check is a check that has been written more than six months ago and has not been cashed or deposited. A post-dated check is a check with a future date written on it, indicating that the funds should not be withdrawn until that date.