BANKING AFFAIRS

Detailed explanation-1: -How Long is a DD Valid? As per the Reserve Bank of India’s (RBI) guidelines, a demand draft is valid for 3 months from the date when the draft was issued by the bank. After the third month, you can re-validate the DD upon written request to the issuing bank.

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: -A demand draft can be cancelled within 3 months from the date of issue. According to the Reserve Bank of India (RBI) regulation, a demand draft is valid for three months from the date it was issued by the bank. You can revalidate the DD after the third month by writing to the issuing bank.

Detailed explanation-4: -As per guidelines of Reserve Bank of India (RBI), the validity period of cheque from the date of issue is 3 months.

Detailed explanation-5: -Typically, a bank draft does not expire but most often it is recommended that a buyer does not purchase one too far in advance.