What happens if cheque is post-dated?

What happens if cheque is post-dated?

A “post- dated cheque” is only a bill of exchange when it is written or drawn, it becomes a “cheque” when it is payable on demand. As a bill of exchange a post-dated cheque remains negotiable but it will not become a “cheque” till the date when it becomes “payable on demand”.

How long is a post-dated cheque valid?

3 months
The validity of a post-dated cheque in India is 3 months from the date specified on the cheque.

How do I cash a post-dated check?

To cash a post-dated check, you should visit any nearby bank, credit union, or check cashing store (preferably from the list given above) along with a valid government-issued photo ID. Once there, the process of cashing the check will be similar to cashing a normal check (that is not post-dated).

Can you accept a post-dated check?

Post-dated checks are perfectly legal. If they weren’t, “pay day” lenders, and other crude forms of credit, couldn’t exist. Only “properly payable” checks are supposed to be cashed by banks. But just about anything with the right signature on it is properly payable, including post-dated and overdrawn checks.

Can post-dated cheques be cashed early?

A person or a merchant can’t cash a post-dated cheque before a certain date. If your financial institution cashes a post-dated cheque early, try to resolve this with your branch. Ask your financial institution to put the money back into your account. You must make the request before the due date on the cheque.

How post dated Cheques work Philippines?

The post-dated check is the most common means of payment for a loan. It is a check that is written and issued by the debtor for a date in the future and may not be encashed or deposited until such time.

What happens if you deposit a post-dated cheque early?

It is an agreement but banks do want to catch it and not process it. If a post dated cheque does clear early, they can reverse it back as it was their mistake. The stale date is the main purpose of the dating of the cheque.

How does a post-dated check work?

Postdating a check is done by writing a check for a future date instead of the actual date the check was written. This is typically done with the intention that the check recipient will not cash or deposit the check until the future indicated date.

Is it illegal to deposit a postdated check?

Postdating a check is done by writing a check for a future date instead of the actual date the check was written. It is legal for an individual to postdate a check, as well as for a bank to cash or deposit it.

Can I deposit a postdated check early Philippines?

So, yes, you can deposit a post-dated check before the date shown, but it isn’t advised. Be prepared for the possibility that the check funds won’t be available. Not only do you not want to incur an insufficient funds fee, you don’t want to go through the trouble of obtaining a reissued check.

Is a post-dated check price certain in money?

A postdated check—a check with a date that is later than the current date—is not considered to be currency. Further, the postdated check should not be reported as part of the Cash account balance until the date of the check.