New Delhi: What is most distressing that validity of cheques and drafts will be only for three months from April 1, 2012. People will be able to deposit the instrument within three months time. The same rule will be applicable for pay orders and bankers cheque also.

Presently, cheques can be deposited till six months from the date of issuance. Observing the misuse of cheques and drafts, the Reserve Bank of India (RBI) issued a circular in this regard to other banks also.

The Centre had informed the apex bank that people were misusing these instruments by circulating them as cash for period of six months.

The RBI also asked banks to ensure that account payee cheques and drafts are only credited to accounts of the person named in the instrument.

Meanwhile, in-order to check the flow of black money, the RBI has issued a notification which mandates that the drafts of more than Rs 20, 000 will be account payee only now. This means, the draft will be deposited in the account of the receiver’s account only.

The RBI received several complaints which stated that banking channels were being used for routing black money.

JPN/Bureau