RBI slashes 3-mth old cheques8217; validity

The directive comes a few days after the central bank issued similar directions to scheduled commmercial banks,stating that such instruments will not be valid if they are over three months old.

8220;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,8221; the circular said.

8220;RBI is satisfied that in public interest and in the interest of the banking policy,it is necessary to reduce the period within which cheques/drafts/pay orders/banker8217;s cheques are presented for payment from six months to three months from the date of such instrument,8221; it said.