BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A cheque issued without drawer’s signature
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A cheque with only signature of the drawer
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A cheque which has completed six months from its date of issue
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A six months’ post dated cheque
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Detailed explanation-1: -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-2: -What is a Stale check? Checks which are at least 180 days old (6 months) are considered stale. Tellers in banks will sometimes reject a check if the date is over that limit. This does not prevent a check from clearing the bank when deposited through other means than a teller.
Detailed explanation-3: -Technically speaking, cheques don’t have an expiry date. But, in practice, banks will usually reject a cheque if you try to pay it in or cash it more than six months from the date of issue – that’s the date written on the cheque.
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 A post-dated check is a check with a future date written on it, indicating that the funds should not be withdrawn until that date.