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.
What does Posted mean on a cheque?
Posting means that the debit – or credit – is applied to your account balance, and the transaction is completed. After a check or other debit arrives at your bank, it posts in the evening along with credits and any other transactions that occurred since the last posting.
How does post dated checks work?
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. For example, assume that today is January 1, and you’re writing a check.
What happens if you deposit a post-dated cheque?
Sometimes a post-dated cheque is deposited before the date on the cheque. If a post-dated cheque you wrote is mistakenly processed before its date, you should contact your bank to let them know. The cheque can be returned and the amount credited back to your account up to the day before the date written on the cheque.
Is post-dated cheque safe?
Using a post-dated cheque (PDC) as a security for repayment of a loan is a common practice among lenders and financial institutions. The court held that if on the date of the cheque, the liability or debt exists or the amount has become legally recoverable, section 138 is attracted and not otherwise.
What happens if you deposit post-dated cheque?
What happens when you deposit a post-dated cheque?
Post-dated Cheques Cashed Early Sometimes a post-dated cheque is deposited before the date on the cheque. The cheque can be returned and the amount credited back to your account up to the day before the date written on the cheque.
Can we issue post-dated cheque?
There are no specific rules on how banks deal with post-dated cheques if they are paid in before the due date. However, it’s likely that if your bank spots a post-dated cheque that you have written, it will return it with the reason given as “post-dated cheque”.
What’s the difference between a post dated and post dated cheque?
A post-dated check (or post-dated cheque) is a check written with a future date. In other words, the date that appears on the check is after the date when the check was written.
Is the bank obligated to honour a post dated cheque?
These cheques bear a date in the past, on which the cheque is written, and so the bank is not obligated to honour such cheques. Post-dated cheque as the name implies is a cheque that carries a later date.
What do you mean by Pdc or post-dated check?
You are here: A post-dated check (PDC) is, as the term implies, a check you issue in advance to your payee, but the date indicated is some date in the future. PDC’s are a convenient way of paying for your dues in advance without actually releasing the amount until the date indicated on the checks. That’s how PDC’s work.
When to use a future date cheque?
It is a cheque issued at any point in time by the drawer but contains a future date, i.e. the paying bank will accept the cheque for honour or encashment if it is presented after passing or arrival of the date specified on the cheque. It is mainly used when you want to make payment at a later date.
