Validity of Cheque / Draft Only 3 Months from 01-Apr-2012

November 9, 2011
by
1 min read

In India, it has been the usual practice among bankers to make payment of only such cheques and drafts as are presented for payment within a period of six months from the date of the instrument.

RBI has taken cognizance that some persons are taking undue advantage of the said practice as these instruments are being circulated in the market like cash for six months. To plug this loophole, RBI has issued a Circular No. DBOD.AML BC.NO.47/14.01.001/2011-12, dtd. 4-Nov-2011 to reduce the period within which cheques/ drafts/ pay orders/ banker’s cheques are presented for payment from six months to three months from the date of such instrument.

RBI has directed Banks that w.e.f. 1-Apr-2012, banks should not make payment of cheques/ drafts/ pay orders/ banker’s cheques if they are presented beyond the period of three months from the date of such instrument.

Post Views: 42

Related Posts

Admin Latest posts
  1. Income Tax deduction for procurements from MSMEs only upon actual payment
  2. Foreign companies may be required to file Tax Returns in India
  3. How Cryptocurrencies Are Taxed In India
  4. Constitution Of The GST Appellate Tribunal – Need For Speedy Judicial Remedy
Previous Story

Auditors in China: US unable to force auditor regulation

Next Story

Indirect tax reforms not to wait for GST

Latest from Blog

Income Tax deduction for procurements from MSMEs only upon actual payment

By Shaleen Shah | LinkedIn, assisted by Divyansh Jain Introduction This Note is relevant to computation of income under the head ‘Income from business and profession’. Section 43B of the Income Tax Act provides a list of expenses allowed as deduction, on cash basis irrespective of the year of accounting.

Foreign companies may be required to file Tax Returns in India

by Nexdigm Private Limited as published on mondaq.com Impact of increase in withholding tax on rates for Fees for Technical Services and Royalty As per Indian Tax laws1, payments made to Non-Residents/Foreign Companies for Fees for Technical Services (FTS) and Royalties were liable to tax at the effective tax rate of

How Cryptocurrencies Are Taxed In India

[Source: forbes.com; Authors: Justin M Bharucha, Aashika Jain] Cryptocurrencies and non-fungible tokens (NFTs) are presently unregulated in India. While the Reserve Bank of India (RBI) had sought to ban cryptocurrencies in 2018, the Supreme Court quashed the attempted ban leaving cryptocurrencies in regulatory limbo – neither illegal nor, strictly speaking,

Higher rate of TDS in certain situations from 1st July 2021

[By Shaleen Shah (Partner), VNCA] Finance Act 2021, has introduced a new section 206AB effective from 1-Jul-2021 wherein a payer/buyer is responsible to deduct TDS at higher rate (i.e. twice the rate as specified under the relevant provision of the Income Tax Act or twice the rate/ rates in force;
GoUp

Don't Miss

New Section 12AB: Re-Registration of Trusts / Institutions registered u/s 10(23C) / 12A / 12AA / 80G of Income Tax Act

[By Shaleen Shah (Partner), VNCA] All the existing charitable and

QRMP scheme launched for GST payers with turnover up to Rs.5 crore

The government has launched the Quarterly Return filing & Monthly