RBI asks banks not to honor cheques beyond 3 mths

MUMBAI: Banks should not make payment of cheques, drafts, pay orders or banker's cheques presented beyond a period of three months from the date of issue, compared with six months currently, the central bank said on Friday.

The rule is effective from April 1, 2012. "Some persons are taking undue advantage of the said practice...as these instruments are being circulated in the market like cash for six months," said the Reserve Bank of India in a notification on its website.

Source: EconomicTimes