Validity Period of Cheque, Draft, Pay Order, Banker’s Cheque
Published in Finance. Tags: Pay & Accounts, Treasury.
Government of West Bengal
Writers’ Buildings, Kolkata-700 001.
No. 10445-F(Y), Dated: 24.12.2012.
Subject: Validity period of the Cheques.
The Reserve Bank of India vide their Circular RBI/2011-12/251/DBOD.AML BC. No. 47/14.01.001/2011-12 dated 4th November 2011 instructed all the Banks to reduce the validity period of the Cheque/Draft/Pay Order/Banker’s Cheque from six (6) months to three (3) months from the date of issue, effected from 1st April 2012.
As per advice of the Comptroller and Auditor General of India, the Accountant General (A&E) West Bengal vide Letter No. A.M.-1/2-1/601 dated 06.11.2012 suggested to maintain uniformity in respect of validity period of cheques issued by the State Government.
Under rule 4.048(1) of the West Bengal Treasury Rules 2005 it has been provided that Cheques shall be payable at any time with three months after the month of issue.
Now, after careful consideration of the matter the Governor is pleased to prescribe the following guidelines in respect of validity period of Government Cheques for the purpose of maintaining uniformity in this respect:
(i) All cheques issued by the State Government, whether Treasury Cheques or Cheques issued in respect of Deposit Accounts, Local Fund Accounts, Provident Fund Deposit Accounts or Personal Ledger Accounts maintained at Treasuries/Pay & Accounts Offices or the cheques issued by the authorized Cheque Issuing Authority, shall be valid for three months from the Date of issue. Thus a cheque bearing date 01.04.2013 is payable at any time up to 30.06.2013.
(ii) The Cheque issued against ‘Letter of Credit’ [LOC] shall normally be valid upto 31st March of each financial year or as mentioned in the LOC, whichever is earlier, subject to maximum validity period of three months from the date of issue. At the last quarter of each financial year the Finance Department in consultation with the Principal Accountant General (A&E) West Bengal fix the extended date upto which the Cheques issued against the LOC in that financial year shall be valid after 31st March. But in no case the validity period of any cheque shall exceed three months from the date of issue.
This order shall take effect from 1st January 2013 i.e. the Cheques issued on and from the 1st day of January 2013 shall be valid upto three months from the date of issue.
The relevant provisions of the West Bengal Treasury Rules 2005 shall be amended in due course.
Sd/- H. K. Dwivedi
Secretary to the Government of West Bengal.
No. 10445-F dated 24.12.2012, Source