Reserve Bank of India i.e. RBI the controlling body of Indian Banking Transaction system has reduced the validity of Cheques or draft issued to three months from six months. This new rule will be applicable from 01 April 2012.
Reserve Bank of India has issued the notification in this regard which will be applicable to all banks in India and said that the customers will have to present these instrument within three months from the date of issue.
These steps are taken by RBI to curb the fake cash transaction where the cash are circulated for commission by some other person and credit were made into someone else account. It’s made mandatory by RBI to pay the account payee cheques and drafts to accounts of the person named in the instrument.
All the Cheques or draft which were printed from 01 Apr 2012 will be having three month validity and Drafts above 20,000 will have to be a/c payee only inorder to curb the circulation of black money.