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Stale Cheque

A cheque is a type of banking document that instructs a bank to pay a certain amount of money to the individual named on the document. When referring to an exchange bill, the term “cheque” carries a bank account’s unconditional request to pay the desired sum.

The person who writes a cheque is known as the “drawer,” while the one who is expected to pay is known as the “drawee.” The person listed in the instrument to make the payment is called the “payee.” A cheque is a negotiable instrument that can be further exchanged and paid on demand with the endorsement of the instrument.

What is a Stale cheque?

A cheque is seen as stale when it is presented to the bank after its expiration date for payment. The cheque is valid for six months after the date of issuance. A cheque becomes stale when its time of validity expires.

Due to the Reserve Bank of India’s restrictions on these cheque’ legitimacy, banks do not accept them. A stale cheque cannot be used to make a payment to the bank. Additionally, the bank will not honour them if they are filed for payment. 

Is Post Dated Cheque the same as a Stale Cheque?

A future date is printed on this particular form of a drawn cheque. It resembles a crossed payee or account payee check, except it is postdated to meet the obligation later. It is primarily used to deposit at a later time.

Let’s say a check was written on February 2, 2022, but the date on the check is February 22, 2022. A search of this nature may be conducted on or after April 25, 2021, but not earlier. 

The optimum time to use a posted-dated cheque is when you might not have enough money on hand the day the cheque is written, but you are certain you will have enough money on the specified future date or deadline.

A postdated cheque is valid in India for three months following the date written on the cheque. The issue and validity of a postdated cheque are governed by specific legislation in each country.

How to prevent Stale Cheques?

When you get a cheque for payment, you should attempt to have it deposited into your account right away. At the very least, you should deposit a cheque once every week. This will ensure the original cheque gets to the bank instead of being lost.

The best part is that now mobile banking is possible. Most likely, a mobile app is available for personal and commercial cheque deposits at your financial institution. With this current ease, you can prevent your cheques from being stale.

FAQs on stale cheque

What is stale cheque meaning?

Cheques issued to the bank past their expiration date are referred to as stale cheques.

What is the stale cheque period?

In India, bankers typically only settle cheques and drafts delivered for payment within six months of the instrument's date.

After how many months a cheque becomes stale?

A cheque becomes stale after 6 months from the issue date.

What is an Ante-dated cheque?

When you write a date on your cheque older than the date you give it to the bank, it is called an Ante-dated cheque. The bank won't accept your cheque if you hand it in more than three months after the date you wrote on it.

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