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Journalism of Courage
The RBI has directed cooperative banks not to make payments on cheques and other financial instruments that are over three months old from next fiscal.
8220;RBI directs that with effect from April 1,2012,banks should not make payment of cheques/drafts/pay orders/banker8217;s cheques bearing that date or any subsequent date if they are presented beyond the period of three months from the date of such instrument,8221; the Reserve Bank said in a circular to all state and central cooperative banks.
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.
