Details of a stale cheque
Roopin
(Querist) 09 February 2011
This query is : Resolved
Hello,
Please help me with the below query.
I would like to know what is a stale cheque and what happens if a stale cheque is represented to a bank. Please let me know when a cheque become a stale cheque and what are its consequences.
Thank you.
Parveen Kr. Aggarwal
(Expert) 09 February 2011
As per banking practice in India, a 'stale cheque' would be a cheque which is not presented to the drawee bank within six months' time from the date of the instrument.
The Banking Regulation Act,1949 does not define any specific period after which an instrument (cheque) becomes stale. Some of the banks write specific instructions on the cheque where the validity period is mentioned. In such case, the cheque will become stale after expiry of the period from the date of issue.
Ajay Bansal
(Expert) 09 February 2011
Stale cheque is nothing but a waste paper.
Amit Minocha
(Expert) 09 February 2011
stale cheque is an un-presentable negotiable instrument discharging the drawer from its liability under the Negotiable Instruments Act
Ganesh Chavan
(Expert) 10 February 2011
I Agree with Mr.Aggarwal Sir.
malipeddi jaggarao
(Expert) 13 February 2011
The banker will return the cheque with the reason "The cheque is stale". You can not take any action against the drawer of the cheque either civil or criminal. Only way out is to return it the drawer and obtain a new one in lieu of it.
