For How Many Months is a Cheque Valid from the Date of Issue?
By Balaji
Updated on: March 15th, 2023
The Validity of the Cheque from the Date of Issue is 3 months. The date of validity of the cheque is initiated by the Reserve Bank of India (RBI) with effect from 1 April 2012. After 3 months, the cheque becomes a stale one, which is equal to a dead cheque in the sense that it is no longer valid. Banks will not honor such cheques. Therefore, such cheques should be properly re-validated by the drawer of the cheque.
Table of content
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1. Validity of a Cheque from the Date of Issue
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2. Types of Cheques
Validity of a Cheque from the Date of Issue
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.
Types of Cheques
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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