Overdue, Stale or Out-of-date Cheques
In India, a cheque, which has been in circulation for more than _______, is regarded by bankers as stale.

Six years

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Three years

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Six months

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Three months

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Solution

The correct option is D Three months
When the date written on the cheque is three months prior to submission to the bank for payment, it is called Stale cheque. Stale cheque and expired dated cheque both are synonymous. As per RBI guidelines, with effect from April 1, 2012, the validity period of cheque is reduced from 6 months to 3 months, from the date of issue of the instrument.

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Overdue, Stale or Out-of-date ChequesIn India, a cheque, which has been in circulation for more than _______, is regarded by bankers as stale.

Overdue, Stale or Out-of-date Cheques
In India, a cheque, which has been in circulation for more than _______, is regarded by bankers as stale.