The Reserve Bank of India (RBI) on Sunday said cheques presented after three months from the date of issue would not be accepted in banks. This would be effective from April 1, 2012. Currently, cheques presented up to six months after the date of issue are accepted. The guideline applies to drafts, pay orders and bankers’ cheques as well.
RBI said some people were taking undue advantage of the current practice, and these instruments were being circulated in the market like cash for six months. It added it was necessary, in public interest and in the interest of banking policy, to reduce the period within which these instruments are presented for payment from six months to three months from the date of issue.
The banking regulator also issued a notification asking banks to strictly adhere to norms and issue pass books to savings bank account holders asked to do so, instead of issuing computer-generated account statements even when customers desired pass books.
RBI said banks were not permitted to credit ‘account payee’ cheques to the account of any person other than the payee named, unless payees of such cheques were members of co-operative credit societies, and the amount did not exceed Rs 50,000.