Question
Download Solution PDFFor how many months is a cheque valid from the date of issue?
A. 1 month
B. 2 months
C. 3 months
D. 6 months
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe Correct Answer is Option 4 i.e C.
- The validity of a cheque is estimated to be within a period of three months from the date of its issue.
- With effect from April 1, 2012, the validity period of Cheques, Demand Drafts, Pay Orders, and Banker's Cheques was reduced from 6 months to 3 months, from the date of its issue.
- Post-dated cheque: It is a cheque on which future date is written by the issuer for the payment.
- Outdated cheque: A cheque is outdated when it is outstanding for a period of more than 3 months from the date of issue.
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