Post-dated cheques, like normal cheques, have a validity of 3 months from the date of issuance. The national bank of India, RBI Reserve Bank of India , has reduced the validity period of all cheques from the previous 6 months to 3 months, effective April 1, However, there is a small technicality.
The 3 months are not counted in the number of days, but the date of issuance. For example, if the cheque was issued or is payable on 01 Jan , the cheque will be valid till 31 st of Mar , irrespective of the number of days in between. Post-dated cheques are usually issued in one of the below cases. Section of the Negotiable Instruments Act applies to cheques and post-dated cheques alike. Under Section , Post-dated cheques should have an amount written with a future date for withdrawl.
There have been incidents where blank post dated cheques have been issued, and the courts have promptly rejected these as the cheques become a bill of exchange only if a certain amount is mentioned on the post-dated cheque. It is important to note that a bounced or dishonoured cheque is considered a criminal offence, punishable by a jail term or fines under section of the Negotiable Instruments Act.
Under the provisions of the Negotiable Instruments Act, the legal penalty for the dishonour of a post dated cheque is:. As per the provisions of section of the Negotiable Instruments Act, a legal notice should be issued within 30 days of the date the cheque bounced or was dishonoured. In the absence of a valid response from the respondent, the concerned party must file a case within 45 days from the date of the legal notice.
Post dated cheques are a great way to enjoy products and services before you actually pay for such services and products. They can also be used as security for short term loans. It is also a quick way to continue business operations without having to stop for want of funds. It also ensures the quality of the product or service. Post-dated cheques now have a validity of only 3 months from the date of issuance. What is the validity of normal cheques? The content that we create is free and independently-sourced, devoid of any paid-for promotion.
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Find out if post-dated checks will be accepted by bank's earlier than the specified date intended for deposit. By Simon Zhen. Continue Reading. Compare Best Accounts Now. Simon Zhen is the chief research analyst for MyBankTracker. With more than 11 years following the retail banking industry, he has become an expert on consumer banking products, bank innovations, and financial technology.
Read more. Let me tell you about TD and how screwed i am because the mobile app isn't smart enough to know what a post dated check is. Nobody could or has been able to provide any kind of input or help. TD has never attempted to contact myself or my fiance to resolve this issue, literally I was ignored and all of a sudden im being hit with collections, for something that was clearly stated by Ashley doesn't happen. I literally just left my other bank because of completely senseless activities that were going on that they couldn't figure out for the life of them joining the TD Branch in hopes that i would actually have a reliable financial institution, cash my first paycheck and end up getting screwed anyway.
This is literally just one situation that I have with this bank, I don't want to get into how bad they screwed my grandmother's and my joint account because for some reason, your only allowed one profile.
Suppose there is no Money in the bank account of issuer when a post-dated cheque is presented to the bank before due date by the holder, there is no criminal offence for issuer. As far as I know, in India, if bank pays for post-dated cheque before due date, the bank is responsible for the payment. Might be your only chance to get paid. Wells Fargo won't allow deposit of a post-dated check. I want to deposit my paycheck the day before the date on the check.
However, I'm wondering about doing it via the mobile app one day before the date of the check? Postdated checks are normal checks, but the person writing the check chooses to write a later date on it. This date can be tomorrow, next week, or even years from now. If it's later than the current date, then it's a postdated check.
People usually postdate checks when they want the recipient the person or business receiving the payment, also known as the payee to wait before depositing the check. Two potential reasons for this include:. Postdated checks are legal. It is also illegal to pretend to pay someone without actually intending to do so. Just because it's legal to write a postdated check doesn't mean things will work out the way you intended. The date you choose to use is not part of a legally binding agreement between you and the payee.
In most cases, the recipient can deposit the check at any time, and the bank is free to pay funds out of your account before the date shown on your check. While postdating a check won't guarantee a delay, you can specifically instruct your bank not to cash a certain check until a certain day.
Banks have different policies for how long they will continue to monitor to prevent premature payment. In most cases, when you receive a postdated check, you can deposit or cash a postdated check at any time. Debt collectors may be prohibited from processing a check before the date on the check, but most individuals are free to take postdated checks to the bank immediately.
That said, if you agreed to wait, cashing the check prematurely might be considered in violation of an oral agreement, and that could be illegal in some jurisdictions.
If the account does not have sufficient funds, the check might bounce , and you might have to pay insufficient funds or overdraft fees to your bank.
When you have a postdated check, find out if the check was intentionally postdated and figure out a solution. Has the law changed recently so that I am not allowed to post-date a cheque? No, the law has not changed — it is the way we pay that has changed.
If I agreed with the person I was giving the cheque to that I could post-date a cheque but I am later charged as it was paid in early, can I reclaim this charge from my bank?
If I accept a post-dated cheque, what happens if the account of the person who gave me the cheque is closed before I pay the cheque in? What about businesses, surely they rely on post-dated cheques to keep control of their finances? Businesses should speak to their bank for more information. How are banks letting their customers know that they shouldn't post-date cheques? The original video Euro and currency clearings The law relating to cheques Glossary Newsletters Stay up to date with Pay.
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