Validity of Pay Instruments Reduced

RBI (Reserve Bank of India) has issued a notification to all member banks that with effect from April 2012 the validity of pay instruments(Demand Drafts/Pay orders/ Cheques) will be for a period of three months from the date of issue.

Validity of Pay instruments

The earlier validity for these instruments was six months fron the date of issue. This reduction in the validity is to prevent misuse of the instruments and therby prohibiting fraudulent transactions. RBI has instructed the banks to inform their customers accordinly so that the implementation of this new rule can take place smoothly.

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