RBI made Cheques, Drafts to be valid for 3 months only

                  Banks will stop honoring cheques and drafts if they are not presented within three months of the date of issue as against six months earlier.

                 The decision to reduce the validity of cheques, bank drafts and other instruments to three months announced by the reserve bank of India (RBI) earlier will come into effect from April 1, 2012. With a view mitigating frauds related with such instruments, the RBI in a directive had said with effect from April 1. 2012, banks should not make payments against cheques, drafts, pay orders or banker’s cheques if they are presented after the period of three months from date of issue.

                The directive followed complaints that some persons were talking undue advantage of the six-month validity period and circulating these instruments like cash.