Can I Withdraw Cash from a Cheque if the Cheque Date is Over?
Understanding Cheque Validity and Date
When dealing with cheques, it's important to understand the validity and the date mentioned on them. The date on a cheque typically refers to the date it was written, not an expiration date. This date is significant because it determines the period during which the cheque can be presented for payment.
The validity of a cheque generally starts from the date mentioned on the cheque and ends three months from that date. Once this period is over, the cheque becomes invalid and cannot be used to withdraw cash.
Post-Dated Cheques
Post-dated cheques are specific types of cheques where the payment is to be made at a future date specified by the drawer. These cheques are usually presented after the specified date has passed.
For example, if a post-dated cheque with the payment due on April 13, 2023, is presented on April 10, 10 April 2023, or 11 April 2023, banks will likely return the cheque. This is because the cheque is post-dated and cannot be encashed before the specified date. Presenting the cheque early would be considered a misuse of the cheque and would violate the terms of the cheque.
Bank Policies and Validity of Cheques
While the general rule is that cheques are valid for a maximum of 90 days from the date they were written, the exact validity period can vary by country and bank. Various countries and banks may have different rules regarding the maximum validity of cheques. Some banks may accept cheques up to 3 months, while others may extend this period to 6 months, or even 12 months in some cases.
For instance, if a cheque is written on January 1, 2023, it would be valid until the end of March 2023. If the cheque exceeds this period, attempting to cash or withdraw from it would likely result in the cheque being rejected by the bank.
Why are Cheques Valid for a Limited Time?
There are several reasons why cheque validity periods are limited. One of the key reasons is to prevent unauthorized use of the cheque. If a person wrote a cheque in advance (e.g., expecting to receive a paycheck after 30 days), presenting it before the due date could result in the cheque being dishonored or rejected by the bank, as the drawer might not have sufficient funds at that time.
Another reason is to ensure that the drawer has sufficient funds in the bank account when the cheque is presented. By limiting the validity period, banks can manage their risk and ensure that the drawer has the necessary funds to cover the payment.
Examples and Practical Advice
Let's consider a specific example. On April 10, 2017, there was a cheque dated April 13, 2017. If this cheque was presented on April 10, 10 April 2017, or 11 April 2017, the banker would return it, citing the reason as a post-dated cheque.
The cheque only attains its valid value on the date specified—on April 13, 2017. Therefore, presenting it on any day before that date would result in the cheque being returned or declined by the bank.
However, there are scenarios where a cheque might not be accepted even after the specified date. Banks may have their own policies, and if the cheque exceeds the maximum allowable period, it might be deemed invalid regardless of the specific date.
Conclusion
In summary, cheques are typically valid for a short period (usually 90 days) from the date they are written. Post-dated cheques must be presented only after the specified future date. If you try to withdraw cash from a cheque that has exceeded its validity period, the bank is unlikely to honor it. Always ensure you check the validity period of the cheque before presenting it for payment.