What is a "Stale Cheque" for the banker?

Question

Mir Mujtaba Ali · Answer

Stale cheque is a cheque which is not presented to the drawee bank within a time of6 months from the date of issuance (some banks write the validity period on cheques).

Common wealth organization specify the time lag as15 months.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN · Answer

When cheques have not been deposited into the Bank or not cleared within a specified time-frame, they are called Stale Cheques/Instruments. A stale cheque is not an invalid cheque, but it may be deemed 'irregular' bill of exchange which a banker may refuse to honor it unless its drawer reconfirms it paymeent either by inserting a new payment date or issue of a substitute cheque in lieu of the original. The liability of payment of the proceeds cannot be terminated on non encashment of a cheque for the reason of it being a stale cheque. It is always customary to issue a substitute cheque by the drawer without any kind of rejections/objections as the liability of payment never ceases over the issue of the cheque merely other than by means of its encashment in the prescribed ways.

padmakumar pathiyil · Answer

An out dated cheque.

Salah Othman Yousef Alshambaati · Answer

Agreed with the answer VENKITARAMAN

Malik Khalid Mahmood · Answer

Expired cheques

Utilisateur supprimé · Answer

Very good answer Mr Venkitaraman

Tanveer Qureshi · Answer

If a cheque cannot present before drawee bank within stipulated time (six months after date of issue) it become stale,

FITAH MOHAMED · Answer

I AGREE WITH ALL ANSWERS .........

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What is a "Stale Cheque" for the banker?

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