What is the Validity Period of Cheque?

By BYJU'S Exam Prep

Updated on: November 9th, 2023

The Validity Period of the Cheque is 3 months from the date of issue. Cheques used to be valid for six months, but as of April 1, 2012, that period has been reduced to three months. A cheque is an instruction to a bank to deduct a specified amount from the account of the drawer and is written on a specially printed form.

Validity Period of Cheque

The RBI issued a fresh guideline to revise the period of validity of certain banking instruments from 6 to 3 months. From 1 April 2012 onwards, the validity period of cheques, demand drafts, banker’s cheques, and pay orders changed to 3 months from the issued date. And when the period of validity ends for a cheque, it becomes stale or invalid and cannot be submitted for any payment to the bank. Also, if a person submits an invalid cheque, the cheque will not be honored by the bank.

A check is a written instruction to a bank (or credit union) to withdraw a specific sum of money from a person’s account and pay it to the person listed as the payee on the check. The drawer, who is the person who writes the cheque, keeps the funds in a transaction banking account (also known as a current, cheque, chequing, checking, or share draught account).

The drawer instructs their bank, known as the drawee, to pay the amount specified to the payee by writing various information on the cheque, including the amount, date, and payee.

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