Validity of a Cheque
A Cheque is a dated and signed document that orders a bank to pay a specific amount of money from a person's account to the person whose name the cheque has been issued (order cheque) or the person carrying it (bearer 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. Once the drawer re-validates the cheque, the life of the cheque gets extended by three more months from the date of re-validation.
Prior to April 2012, the cheque used to be valid for 6 months. However, the validity window was reduced after that for cheques, demand drafts, banker’s cheques, and pay orders. Thus, a person who is receiving a cheque must ensure that they submit it to the bank in this 3-month window itself. Here are the different types of cheques that are used in the banking system. All these cheques have different purposes and are used on separate occasions.
- Bearer Cheque
- Order Cheque
- Blank Cheque
- Ante-Dated Cheque
- Post-Dated Cheque
- Stale Cheque
- Crossed Cheque
- Open (Uncrossed) Cheque
- Self-Cheque
- Mutilated Cheque
- GIFT Cheque
- Pay Yourself Cheque
- Traveller Cheque
- Local Cheque
- Outstation Cheque
- At Par Cheque
- Banker’s Cheque
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