Under the Reserve Bank of India’s directions effective from 1 April 2012, within what period from the…
From 1 April 2012, the Reserve Bank of India directed the covered banks to decline payment of cheques and bank drafts dated on or after that day if presented more than three…
Choose your answer
Under the Reserve Bank of India’s directions effective from 1 April 2012, within what period from the date on a cheque or bank draft must it be presented for payment?
Answer and explanation
Correct answer B
From 1 April 2012, the Reserve Bank of India directed the covered banks to decline payment of cheques and bank drafts dated on or after that day if presented more than three months after the date on the instrument.
Option feedback
Option A
Six months was the earlier banking practice described by the RBI. The 2012 direction shortened the period.
Option B
The RBI direction sets a period of three months from the date on the instrument.
Option C
Nine months exceeds the three-month period prescribed by the RBI.
Option D
Twelve months exceeds the three-month period prescribed by the RBI.
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