The Reserve Bank of India has issued new set of guidelines in context of usage of cheques and bank drafts. The apex bank has shortened the validity period for these instruments from present 6 months to 3 months.
The unfair usage of these instruments by circulating it like cash which was brought into the consideration of Government prompted the Reserve Bank to make amendments. RBI has also asked the banks to make it sure that the account payee cheques and drafts are credited to the account of the person for which they are meant.
The development will be effective from April 1 and to make the bank customers aware of it the Reserve Bank of India has asked the lenders to print the change on the cheques and the drafts issued from 1st April onwards.
