BANKING AFFAIRS

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: -3 months is the validity of the cheque from the date of issue. The date of validity of the cheque is initiated by the Reserve Bank of India (RBI) with effect from 1 April 2012. After 3 months, the cheque becomes a stale one, which is equal to a dead cheque in the sense that it is no longer valid.

Detailed explanation-3: -Accordingly, cheques, Drafts, Pay Orders and Banker’s Cheques are “valid for 3 months from the date of instrument”, with effect from 01.04.

Detailed explanation-4: -Stale Cheque A cheque past its validity, three months after the date of being issued, is called a stale cheque.

Detailed explanation-5: -Validity of a Cheque It is a type of bill of exchange per the Negotiable Instruments Act 1881. As per RBI guidelines, the cheque is valid for 3 months only. After the 3 months, the drawer has to revalidate to increase the validity by 3 months.