difference between open cheque and stale cheque

A stale cheque contains a date, i.e. three months or more, in the past. On the other hand, a post-dated cheque contains a future date. A post-dated cheque cannot be accepted or honoured earlier than the date mentioned on the cheque, whereas a stale cheque is not honoured at all.

1. What is a stale Cheque?
2. What is the difference between open and closed Cheque?
3. What is a stale check and how is it different from a postdated check?
4. What happens to a stale Cheque?
5. Can a stale Cheque be paid?
6. How many months is a stale check?
7. Which Cheque is the safest?
8. How do I know if a Cheque is open?
9. What is the validity period of a Cheque?
10. Can a stale Cheque be revalidated?
11. When a Cheque is drawn after the date of issue is called?
12. Can we deposit predated Cheque?

What is a stale Cheque?

Stale cheques are outdated cheques issued to the bank after the date of payment has expired. ... After three months from the issuance date, cheques become stale. Post-dated cheques may be dated in the future, it may be months or years from the date of issue.

What is the difference between open and closed Cheque?

The main difference between open cheque and closed cheque is at security level. open cheque is not secured but in closed cheque is highly security level and this type of cheque is very famous in business world.

What is a stale check and how is it different from a postdated check?

A Postdated check is a check with a written date in the future. A Stale-Dated check is a check with a written date of six months (or more) past the date it is being presented. We reserve the right to pay or not pay any check, postdated or stale-dated.

What happens to a stale Cheque?

What is a stale-dated check? A stale check is one presented to a bank after a specified time, typically six months. While a stale-dated check is not necessarily invalid, banks may deem it an “irregular” bill of exchange and refuse to honor it.

Can a stale Cheque be paid?

A stale cheque is one which is outstanding for a period more than 3 months from the issue date. A post-dated cheque is a valid cheque which a banker honors only when the date it bears arrives. It cannot be honored. It can be honored, only when the date on the cheque has arrived.

How many months is a stale check?

Personal, business, and payroll checks are good for 6 months (180 days). Some businesses have “void after 90 days” pre-printed on their checks. Most banks will honor those checks for up to 180 days and the pre-printed language is meant to encourage people to deposit or cash a check sooner than later.

Which Cheque is the safest?

A cross cheque is safer as compared to a bearer cheque as it is crossed i.e, has two parallel lines either on the whole cheque or top left which tells the banker that it cannot be encashed over the counter. It has to be directly deposited in the bank account of the person who's name is written on the cheque.

How do I know if a Cheque is open?

An open cheque is a cheque that is not crossed on the left corner and payable at the counter of the drawee bank on presentation of the cheque.

What is the validity period of a Cheque?

Revised validity period of Cheques, Drafts, Pay Orders & Banker's Cheques. As per RBI guidelines, with effect from April 1, 2012, the validity period of Cheques, Demand Drafts, Pay Orders and Banker's Cheques will be reduced from 6 months to 3 months, from the date of issue of the instrument.

Can a stale Cheque be revalidated?

THE SUPREME Court has held that cheques can be revalidated by the drawer to give them fresh life of another six months after expiry of the validity period. the supreme court has held that cheques can be revalidated by the drawer to give them fresh life of another six months after expiry of the validity period.

When a Cheque is drawn after the date of issue is called?

A stale cheque is one which is presented after a very long period of time since the date of its issue.

Can we deposit predated Cheque?

Yes, a pre-dated check can be deposited. In fact most deposited checks are pre-dated. Every issued check is expected to have a date on it. A pre-dated check is a check with a date prior to the date of deposit.