Reserve Bank Of India, in it’s circular vide ref DBOD.AML BC.No.47/14.01.001/2011-12 dated 04 Nov 2011, has reduced the validity of Banks’ payment instruments viz. cheques, draft, BCs, POs from existing 6 months to 3 months. Though, the directives hold applicable from next financial year i.e. w.e.f. 01 April 2012, the act of using such instruments as cash in day to day business by ill practictioners will be thwarted.
The central bank has necessary rights under BR Act, 1949 to issue such directives.
So, next time when you keep such instruments locked in your drawer, make sure that you remember to present it before 3 months from the date of issue.