Validity of Negotiable Instruments w.e.f 01-04-2012

By : Basavaraj on 07 November 2011

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w.e.f. 01.04.2012 - Commercial Banks will not make payment of cheques/drafts/pay orders/banker's cheques if presented beyond the period of three (3) months from the date on such instrument.

i.e., The validity period of negotiable instruments is reduced from 6 months to 3 months, w.e.f. 01.04.2012.

Source : ,

Attached File : 58559_13452_cvc041111_rbi_on_validity_of_negotiable_instruments.pdf downloaded 504 times

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THE MANDATE TO A BANKER IN THE FORM OF CHEQUE BY THE DRAWER,CAN NOT BE ISSUED WITH THE CONDITION OF VALIDITY PERIOD UNLESS THE N I, ACT IS AMENDED TO THAT EFFECT.DRAFT (DD) BEING A BANKERS CHEQUE,CAN BE ISSUED IN SUCH A WAY.

Parbodh Chander Bali

Wrote on 14 November 2011

The cheque leaves should have a separate column especially for validity and that must be filled by issuing party with a facility for 3 months maximum and endorse in writing at the time of issuing. It will fix the intentions of the parties of concerned. There should not be validity fixed by default. Some time the payer wait the day, when the balance is short in the account of payee and produce the instrument for clearing and cause a great pain to payee.

BALLA VISWESWARA RAO

Wrote on 12 November 2011

I strongly support Mr.V R Shroff for bringing the point, which needs to be considered for the benefit of one and all. I thank Mr.V R Shroff for bringing my point with proper reasons.

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