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RBI has recently released circular on Payments of Cheques / Drafts / Pay Orders / Banker's Cheques . The same has been summarized as below. Detailed communication can be referred to in the attached RBI circular

Circular No. DBOD.AML BC. No. 47/14.01.001/2011-12 dated November 04, 2011 titled Payments of Cheques / Drafts / Pay Orders / Banker's Cheques

Section 35A of the Banking Regulation Act, 1949, Reserve Bank hereby directs that with effect from April 1, 2012, banks should not make payment of cheques/drafts/pay orders/banker’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.

Reserve Bank is satisfied that in public interest and in the interest of banking policy it is necessary 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.

The full RBI Circular can be downloaded below
RBI Circular.pdf