Cheques, bank draft to be valid only for 3 months

New Delhi, Mar 24: In a bid to mitigate fraud related activities, the Reserve Bank of India (RBI) has announced that cheques and bank drafts will be valid only for three months with effect from Apr 1.

The RBI has directed all public and private sector banks that they should not make payments against cheques, drafts, pay orders or banker's cheques if presented after three months from the date of issue.

RBI had earlier published a notice to the banks saying some persons were taking undue advantage of the six month validity of cheques, drafts, pay orders, banker's cheques by circulating them like cash for this period.

OneIndia News