Mumbai: The RBI on Wednesday directed the regional rural banks not to make payments on cheques and other financial papers which are more than three months old. "RRBs should not make payment of cheques/drafts/pay orders/banker's cheques bearing that date or any subsequent date, if they are presented beyond the period of three months from the date of such instrument," the Reserve Bank said in a statement. The direction came a few days after the central bank said that payments on such papers will not be valid if they are over three months old. "In India, it has been the usual practice among bankers to make payment of only such cheques and drafts as are presented for payment within a period of six months from the date of the instrument. "RBI is satisfied that in public interest and in the interest of banking policy it is necessary to reduce the period within which cheques/drafts/pay orders/banker’s cheques are presented for payment from six months to three months from the date of such instrument," it said.
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