Question

What is the validity period of a cheque from the date of issuing ?

• A. 3 months
• B. 6 months
• C. 12 months
• D. 1 month

Hint:

Financial regulations can change over time. It's important to remember the current rules. The RBI guideline for cheque validity was reduced from 6 months to 3 months, and this is the current standard.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
The question asks for the time period during which a cheque remains valid and can be presented to a bank for payment after it has been issued.
Step 2: Detailed Explanation:
According to the guidelines issued by the Reserve Bank of India (RBI), the validity period of a cheque is 3 months from the date written on it.
This rule was implemented from April 1, 2012. Prior to this date, the validity period for a cheque was 6 months. The change was made to prevent the misuse of cheques as post-dated instruments and to reduce risks associated with them.
Step 3: Final Answer:
A cheque is valid for 3 months from its date of issue.