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Q:

Cheques, Drafts, Pay Orders and Banker’s Cheques are “valid for ___________________ months from the date of instrument.

A) 4 months  B) 1 months 
C) 6 months  D) 3 months 

Answer:   D) 3 months 



Explanation:

In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, Reserve Bank of India directs that with effect from April 1, 2012, banks should not make payment of cheques/drafts/pay orders/banker’s cheques bearing that date or any subsequent date, if they are presented beyond the period of three months from the date of such instrument. Accordingly, cheques, Drafts, Pay Orders and Banker’s Cheques are “valid for 3 months from the date of instrument”, with effect from 01.04.2012. 

Subject: General Awareness
Exam Prep: Bank Exams , AIEEE
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