10 June 2016
My cheque date is 14/12/2015. Time limit by RBI for validity of cheque is 3month i.e. is 13/03/2016 on date 12/03/2016 and 13/03/2016 was weekend so bank is off
i deposit the cheque on date 14/03/2016. but bank refuse the cheque with the reason that cheque was time bared. please give me legal spot or any judgement of court regarding this issue
10 June 2016
please check whether the cheque was for local clearing OR NOT. And mind you, the cheque should be VALID at the time of PAYMENT. i.e. when the cheque is presented for payment. The paying banker has to check the validity
Subject to above, the action of the collecting bank is justified. It seems that collecting banker was sure of not able to present the cheque to paying banker before its validity tenure.
CAclubindia
