Consumers and businesses are advised not to accept post-dated cheques because of the problems they create if they are paid into their bank accounts before the due date. There are no specific rules on how banks deal with these post-dated cheques if they are paid in before the due date.
How do I deposit a post-dated cheque?
You can just deposit it with your bank, and they will clear it on the day of the instrument. Not until the date on the check or after. You can’t cash it before that date, either. It’s not a good idea to accept a post-dated check.
What do you do with a post-dated check?
Postdated checks can usually be cashed or deposited at any time unless the person who wrote the check specifically told their bank not to honor the check until a certain date. Rather than writing a postdated check, it may be better to use online payment services or coordinate with your biller to move back the due date.
What is the validity of a post dated Cheque?
3 months
Posted dated cheques are best when you may not have ample funds available on the day of issuance of the check, but you are confident that the funds will be available on the future date or deadline stated on the check. The validity of a post-dated cheque in India is 3 months from the date specified on the cheque.
Can a post dated cheque be paid on the due date?
In some instances a post-dated cheque may be retained by the bank and paid on the due date if that date is only a few days away.
What’s the story of a post dated cheque?
So, the story of the post-dated cheque is that you don’t have sufficient balance on the date the drawee demands the sum from you and you issue him a post-dated cheque with a future date. This is kind of giving assurance to the recipient or the drawee that on this future date, the payment will be honoured.
Which is the validity of post dated cheque in India?
In India, the validity of a post-dated cheque is 3 months from the date mentioned on the cheque. Similarly, each country has specific rules related to the issue and validity of the post-dated cheque Why is it not advisable to issue a post-dated cheque?
Can a demand for payment be made before the date of the cheque?
Where a demand for payment of a cheque is made before the date of the cheque arrives, the cheque shall not, by reason of the demand, be taken to have been duly presented for payment.
