Cheques to have only 3 months of validity

[perumal maruthu]

Dear sirs

Wef 1/4/2012, dated cheques will have a life of only 3 months. Hence, pl ensure before depositing cheques for clearing, the cheque does have an un-expired period, to be honoured by the concerned Bank.

(eg; Cheques bearing dates of 31/12/11 and earlier dates will be dishoured by Banks if presented after 1/4/12 ).

This is only a reminder. Pl ignore if found redundant.

WISH YOU ALL HAPPY UGADI!

M.Perumal

Chennai

[BIBHU BARUA]

THANK YOU FOR THE VALUABLE INFORMATION. WITH REGARDS, B N BARUAH(VRS) EX SR MANAGER ,ALLAHABAD BANK, DIBRUGARH, ASSAM.

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[ravi jain]

Dear Perumal,

Good refrehment to all. Thanks and wish you ALL HAPPY UGADI.

Be happy

Ravi jain (PSB)

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[Jaganathan vk]

hello comrade!
from what i understood from news reports, the new rule regarding
lifespan of cheque stands changed from 01/2/2012.
to clarify an example; a cheque dt 01.4.2012 will be valid if
presented not later than 30.6.2012: however a cheque dt 01.03.2012
will be valid if presented not later than 31/8/2012.
i fope to stand corrected if i am wrong, perumal anne!

On Sat, Mar 24, 2012 at 3:59 PM, perumal maruthu
<perumal...@yahoo.co.in> wrote:

[Jaganathan vk]

sorry for the typing error, the new rule reg validity of chqs applie
from 01/4/2012 and not 01/2/2012

[perumal maruthu]

Dear sir,

Pl find the Notification of RBI. The last sentence of the First Paragraph clearly mentions the INTENTION and the instruction to the Bankers.

M.Perumal

Chennai

 

RBI/ 2011-12/288
UBD. BPD. (PCB) No. 15 /12.05.001/2011-12

December 2, 2011

The Chief Executive Officer
All Primary (Urban) Co-operative Banks

Dear Sir/ Madam

Payment of Cheques / Drafts / Pay Orders / Banker's Cheques

In India, it has been the usual practice among bankers to make payment of only such cheques and drafts as are presented for payment within a period of six months from the date of the instrument.

2. It has been brought to the notice of Reserve Bank by Government of India that some persons are taking undue advantage of the said practice of banks of making payment of cheques / drafts / pay orders / banker’s cheques presented within a period of six months from the date of the instrument as these instruments are being circulated in the market like cash for six months. Reserve Bank is satisfied that in public interest and in the interest of banking policy it is necessary to reduce the period within which cheques /drafts/pay orders/banker’s cheques are presented for payment from six months to three months from the date of such instrument. Accordingly, in exercise of the powers conferred by Section 35A read with Section 56 of the Banking Regulation Act, 1949, Reserve Bank hereby directs that with effect from April 1, 2012, banks should not make payment of cheques/drafts/pay orders/banker’s cheques bearing that date or any subsequent date, if they are presented beyond the period of three months from the date of such instrument.

3. Banks should ensure strict compliance of these directions and notify the holders of such instruments of the change in practice by printing or stamping on the cheque leaves, drafts, pay orders and banker’s cheques issued on or after April 1, 2012, by issuing suitable instruction for presentment within the period of three months from the date of the instrument.

4. Please acknowledge receipt to the Regional Office of the Urban Banks Department concerned.

Yours faithfully,

(A.Udgata)
Chief General Manager -in-Charge

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[M V Sethuraman]

I think the new rule is applicable only for cheques to be issued on after 01.04.2012

and all the cheques issued on or before 31.03.2012 will have a validity of six months

as hitherto.

sethuraman

[perumal maruthu]

Dear sir,

Your interpretation ,if that be the intention, will pose infinite operational problems.

RBI has notified this 4 months earlier. So everyone/every entity dealing in cheques/DDs must be aware of this change of tenor. The reduction in validity period is beneficial to the payees, drawers can not take undue advantage of the anachronic 6 months when everything is to be done superfast,in the present time.

Only Gov't Deptts will not heed to this!

M.Perumal

Chennai

From: M V Sethuraman <sethur...@gmail.com>
To: bankpe...@googlegroups.com
Sent: Monday, 26 March 2012 10:46 AM
Subject: Re: bankpensioner Cheques to have only 3 months of validity

[M V Sethuraman]

Dear Mr Perumal,

The highlighted portion very clearly mention that  cheques bearing that date or any subsequent date,

 if they are presented beyond the period of three months from the date of such instrument. 

In other words cheques issued upto and including 31.03.2012  would have a validity of six months.

sethuraman

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[perumal maruthu]

Dear Sir,

I agree with your interpretation. There was no need for RBI to issue these guidelines 4 months back.

(Banks have to print 'valid for 3 months from date of Issue' on each leaf wef 1/4/2012)

M.Perumal

Chennai

From: M V Sethuraman <sethur...@gmail.com>
To: bankpe...@googlegroups.com

[Ramachandran N]

I FOUND  IN A CHEQUE LEAF OF STATE BANK OF INDIA IT IS PRINTED CHEQUES ISSUED ON OR AFTER 01/04/2012 IS VALID FOR THREE

MONTHS AND IT IS TO BE CLARIFIED   WHETHER  THE CHEQUES DATED EARLIER IS VALID FOR 6 MONTHS.

 

N.RAMACHANDRAN

SENIOR MANAGER RETD

CANARA BANK TRIVANDRUM

[perumal maruthu]

Dear sir,

Pl consider the following situation:

Mr A issues 2 cheques ; one dt 1/4/12. Drawee Bank will return if the same is presented for payment after 1/7/12.

Another dt 31/3/12. If presented for payment after 30/6/12, computers will reject it as stale cheque. I understand Banks do not have software intelligence enough to discriminate the cheques issued by the same drawer into cheques issued before/after 1/4/12.

This will create operational problems: some may sue the Bank for honouring cheques and some others for not honouring .

If the Banks install necessary software, these problems can be avoided.

In the late 90s when RBI reduced the validity period of DW/IW from 6months to 3 months, Banks took the unanimous decision of returning any DW/IW if presented after 3 months from its date notwithstanding the DW/IW contains or not the warning ' VALID FOR 3 MONTHS ONLY' .( I have faced several customers persisting for payment/accepting for collection..but such items were bounced)

I hope Clearing Houses will issue further operational gudelines.

A uniform proceedure( as adopted in the case of DW/IW) will save money and men from getting charge-sheeted.for negligence/dereliction.

M.Perumal

Chennai

From: Ramachandran N <nramach...@yahoo.com>
To: "bankpe...@googlegroups.com" <bankpe...@googlegroups.com>
Sent: Friday, 6 April 2012 6:12 PM
Subject: Re: bankpensioner Cheques to have only 3 months of validity

[Parthasarathy Sridharan]

Dear Sirs,

In this regard RBI has issued clarification as under:

Three months validity period is only for cheques issued on and after 01.04.2012. For the cheques issued prior to 01.04.2012 statua quo is to be maintained i.e., the validity of these cheques is 6 months from the date of issue. In other words, all prior cheques will expire on 30.09.2012.

Here a snag is there. If any body issues a pre dated cheque i.e. a  cheque dated 28/2/2012  can be issued on 15/04/2012 to have a validity upto 28/8/2012. Is it not?.

with regards, 

Sridharan

On Sat, Mar 24, 2012 at 3:59 PM, perumal maruthu <perumal...@yahoo.co.in> wrote:

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[ravi jain]

Sir,

THE CHEQUE OF EARLIER DATE AFTER 01/04/2012  IS VALID FOR THREE

MONTHS ONLY FROM DATE OF ITS ISSUE.

be happy

Ravi jain (PSB)

[ravi jain]

Sir,

I have opined below on cheque status but one of our friend has clearly written that cheques dated prior to 01/04/12 will carry validity as per previous guidelines of 06 months as per RBI clarifications. He is correct if he has gone thru such information.

be happy

ravi jain (PSB)

[M V Sethuraman]

Yes, cheques issued on or prior to 31.03.2012 continue to be valid for -6- months as hitherto.
RBI circular is very clear to this effect.

regards
sethuraman

लोकाः समस्ताः सुखिनो भवन्तु।