Banks from today will stop honouring 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 today.
With a view to 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.
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