Is it legal to issue post dated Cheques?
Enforceability of Post Dated Cheques as per Section 138 So, they are enforceable as a negotiable instrument only when it becomes payable on demand. In accordance with the Supreme Court judgements on cheque bounce cases in 1998 of PDC, meaning post-dated cheque, will be considered as a bill of exchange.
What are the consequences of paying post dated Cheques?
This is because there could be possibilities that you may not be able to honour the cheque on the given future date. The possible reason could be expected funds have not come into the bank. On the other side, the recipient may not be aware of this and he may deposit the cheque into bank resulting in a cheque bounce.
Do post dated checks count as cash?
A postdated check—a check with a date that is later than the current date—is not considered to be currency. Further, the postdated check should not be reported as part of the Cash account balance until the date of the check.
What is meant by anti dated cheque?
From Wikipedia, the free encyclopedia. In banking, antedated refers to cheques which have been written by the drawer, and dated at some point in the past.
Is cheque stop payment illegal?
The Supreme Court has ruled that the stop payment of post-dated cheques issued by a person to settle his debt or liability could amount to a penal offence. Submitting post-dated cheques by borrowers is a customary practice for home finance and other retail products like personal, auto and consumer durable loans.
Is cheque bounce criminal offence?
If a cheque is bounced citing insufficient funds in bank account, it is a criminal offence and the payee – the person or the bank – can file a complaint under Section 138 of the Negotiable Instruments Act.
Can I cash a check dated for tomorrow?
Can a bank or credit union cash a post-dated check before the date on the check? Yes. Banks and credit unions generally don’t have to wait until the date you put on a check to cash it. However, state law may require the bank or credit union to wait to cash the check if you give it reasonable notice.
Does date matter on checks?
Because they might not always have enough money in their accounts on the day they write those checks, some folks will postdate their checks so that they aren’t deposited or cashed until after that date. Unfortunately, the fact is that there’s generally no actual obligation to honor the date on a check.
How long is a post-dated Cheque valid?
3 months
The validity of a post-dated cheque in India is 3 months from the date specified on the cheque.
How long till a cheque is stale dated?
six months
Financial institutions don’t have to cash a cheque if it’s too old, or “stale-dated.” Financial institutions usually consider a cheque stale-dated after six months, unless it’s: a certified cheque, or. a Government of Canada cheque.
Can we block the cheque?
The State Bank of India (SBI) gives its customers a facility to stop a cheque without having to visit the home branch. You can stop a cheque from getting processed from the comfort of your home. OnlineSBI alert!
Can you block a cheque?
Banks instruct following modes of requesting for stop payment of cheque and contact such an issue: The account holder can place an online request to the bank. The account holder can make a call to the customer service helpline number. The account holder can visit personally to the branch office and give a written …