In India, banks usually pay cheques and drafts if they are presented for payment within a period of six months from the date of the instrument.
The Reserve Bank of India (RBI) has expressed concerns that this practice is being abused because these instruments are being circulated in the market like cash for the six month period. As a result, the RBI has now revised the rules regarding the period within which cheques and other instruments have to be presented for payment.
Effective April 1, 2012, banks have been directed to not pay any cheques, drafts, pay orders or banker’s cheques if the instrument is presented more than three months after the date of the instrument.