Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Cheques, Drafts Validity Reduced from 6 months to 3 months from 1st April 2012 onwards

34 sec read


 
As per RBI Notification, 1st April 2012 onwards the vailidty of Cheques/Demand Draft/Pay orders will be reduced from 6 months to 3 months. It will be valid only for the 3 months from the date of issuance.

This this regulatory change in banking practice due to misuse by some persons taking advantage of of six month validity cheques, drafts, pay orders, banker’s cheques by circulating them like cash for this period, RBI had said in a notification earlier.

It was reported to Central Economic Intelligence Bureau that some persons are taking undue advantage of the practice of banks of making payment of cheques or draft presented within a period of six months from the date of the instrument as these instruments are being circulated in the market like cash for six months.

To control this measure RBI had reduced the validity of those instruments from 6 months to 3 months.

RBI Notification for Cheques/Drafts/PO Vaildity Reduction to 3 months

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Airtel Payment Bank Offers 7.25% Interest on Deposits

Airtel Payment Bank - India's First Ever Payment Bank launched today across 29 states in India. Finance Minister Arun Jaitley, formally launched the bank....
Rajandran R
1 min read

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More