Stell means old ie the check which has not been cashed for 3 months after issuance is called stale cheque. It is worth noting that after issuing the check, it is necessary to cash it within 3 months.
In today’s time, many ways have come to transfer money in the banking sector. Most of the people use online payment like Net Banking, UPI Payment etc. But, even today paying by check is still one of the most popular options. You must have also paid by check at some point of time. But, do you know about some technical terms of check payment. The person who is issuing the check to some other person is called ‘Drawer’. At the same time, in whose name the check is being issued, it is called Payee. So let us tell you about the types of check-
1. What is a Stale Check?
Stell means old ie the check which has not been cashed for 3 months after issuance is called stale cheque. It is worth noting that after issuing the check, it is necessary to cash it within 3 months. After that you cannot cash it. After the period of three months, that check is considered as an expiry check and it is not valid after that. As per RBI rules, such checks cannot be cashed after the expiry of the period of 3 months.
2. What is a post dated cheque?
Post Dated Cheque is a check that the Payee mentions at a later date before issuing it. For example, you have to pay someone for the future and you issued him a check for any date in the next three months. This type of check is better for those people who do not have money in the account in today’s time but, money is going to come in the next few days. Mention the date on the check according to the money in the account. After this, Payee can withdraw money by putting the check in the bank on that date.
3. What is Ant dated?
Ante-dated check is a check which is drawn for payment in the bank within 3 months from the date of issue. The drawer can cash the check as per his convenience. But, keep in mind that the period for cashing the check should be within three months of issuance or else you may face trouble later.
