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: -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-3: -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.

Detailed explanation-4: -Facing criminal charges The holder is given a chance to resubmit the cheque to the bank within a period of three months of the date mentioned on it. The aggrieved party can also legally prosecute the defaulter by sending a legal notice within 30 days of receiving the cheque return memo.

Detailed explanation-5: -Stale Cheque A cheque past its validity, three months after the date of being issued, is called a stale cheque.