Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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N.K.Assumi (Advocate)     21 July 2012

Rbi notofication reducing 6 month to three month?

Payment of Cheques/ Drafts/ Pay Orders/ Banker’s Cheques: The existing validity period of 6 (six) months of cheques etc. [if not otherwise mentioned on the instrument] has been reduced by the Reserve bank of India to 3 (three) months from the date of the instrument, which will be effective on and from April 1, 2012. Does it mean that a cheque issued on 10th March 2012 will be invalid by 10th July 2012?


 3 Replies

Kishtaiah (Advocate)     21 July 2012

Dear Ld.Fd.Assumi, The stipulation u/s 138 (a) "......Or within the period of its validity whichever is earlier." now in effect reduced six to three months due to above RBI notification w.e.f. 1-4-2012.  The notification only states that the change in validity period is effective from 1-4-2012 as a plicy.  It does not either state or seem to imply that cheques issued before 1-4-2012 shall continue to be valid for six months.  Hence, I am of the opinion that any cheque irrespective of its being issued prior or after 1-4-2012 its validity for presentation expires before expiry of 3 months.  So your apprehension is correct.  I would like to know from other friends, if I am wrong.

shamina sayed (Advocate)     21 July 2012

Yes ,since the validity  is now reduced,the cheque would become stale even though it is issued prior to date of notification. 

N.K.Assumi (Advocate)     22 July 2012

Dear Ld.Sir.Kishtaiah and Shamina sayed, thank you for the responds and the clarification.

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