When a cheque that carries a date later than the date on which it was written by the drawer then the cheque is called post dated cheque. A post dated cheque is a irregular bill of exchange. Therefore, the cheque can not make payment by the bank until the cheque is presented on the particular date or after to the paying bank.
Thursday, September 11, 2008
Blog Archive
About Me
- Banker
- Working in a private sector bank. 21 years of experience in banking. I have worked in Trade Finance, General Banking, Accounts, Cash Management, Reconciliation, Foreign Remittance and Credit Department.
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4 comments:
I want to ask if this is bad especially for those who are assuming that they will get paid?
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There is no harm to issue a post dated cheque. For future business commitment a post dated cheque may be issued to a party. But a bank can not make payment post dated cheque as it is not covered by the Instrument Act. It is responsibility of a client to present the cheque to a bank on the date it is mentioned or there after.
I hope you got the point.
Thanks
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