Sunday, January 26, 2014

An Exciting New Discovery about Bank Cheques

Are you someone who thinks that all Cheques are valid from the date that is mentioned at the top right hand corner of the cheque? I too thought that was the case up until today. If you too have the same understanding about cheques, then I strongly suggest you read the rest of this article…

Before we begin:
A cheque is a monetary instrument that is widely used across india and we have had multiple articles in this blog about it. We all know how to use it and also know that a cheque is valid for a period of only 3 months from the “Date of Issue”.
If I give you a cheque today on the 26th of Jan 2014, our Republic day, when is the earliest the cheque is valid for payment? You would say that starting today the cheque is valid – right? If that was the case, would I be writing this article?

Some Background about Why this article came about

A senior citizen retired couple lives beside our house. The grandpa had some legal case that got settled by the high-court of Chennai after many many years. The couple were excited that they finally got the long overdue amount and happily deposited it in the SBI Branch that is near our house. Unfortunately even after 4 days uncle did not get an SMS that the money is credited into his savings account. Uncle was worried and was expressing his concern to my Dad. My father dragged me into the conversation. After hearing his story and learning that he does not have any online banking services, I suggested that he visit the bank and find out what happened.

Uncle visited the bank branch and to his surprise learnt that the cheque he got was valid only from 1st of Feb and that is why the cheque got rejected. The Branch Manager had returned the cheque to him and he came back. Uncle was disappointed and came to our house along with the cheque. When I saw it, that was the first time I ever found out about a cheque that is valid for payment only the next month…

A Cheque that is Valid only from Next Month – NEWS FLASH!!!

I checked the cheque and found out a sentence in its side which made the cheque valid only from 1st feb.
Current For Three Monthrs only After the Month of Issue

Some Important Points to Note:
1. Not everyone can give such cheques. Individual cheques that you and me are used to using, are always valid from the date of issue.
2. Only Government Departments and the Court can issue such cheques
3. If you receive any cheque from governmental departments or from the court as settlement, make sure to inspect the cheque thoroughly and if you find these words wait until the month is over and then deposit it
4. Don’t worry, cheques are valid for a period of 3 months and so, if you wait for a month that should be ok.
The only good news is that uncle got his cheque back and is waiting for February 1st 2014. Hopefully he will get this money for which he has been waiting for almost a decade now…

Happy Republic Day Everyone!!!

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