How do you write a post-dated check?

How to write a post-dated cheque? Writing the post-dated cheque is no different from writing a regular or normal cheque. In writing a post-dated cheque, the only difference is that you will write a future date instead of the current date. The rest remains the same.

Are post-dated checks legal?

Although it is legal to post-date a check, the bank to which the check is presented for payment may charge the payor’s account even before the date of the check and even if doing so creates an overdraft.

What does post-dated mean on a check?

Postdating a check is done by writing a check for a future date instead of the actual date the check was written. This is typically done with the intention that the check recipient will not cash or deposit the check until the future indicated date.

Do banks have to honor post-dated checks?

Can a bank or credit union cash a post-dated check before the date on the check? Yes. Banks and credit unions generally don’t have to wait until the date you put on a check to cash it. However, state law may require the bank or credit union to wait to cash the check if you give it reasonable notice.

What is an advantage of writing post-dated Cheques?

It acts as an instalment payment system where the payer does not have to pay the amount at one go or at the specified time. It helps the payer cover his position for lack of funds by buying some time before making future payments. It helps in the seamless operation of business.

What is PDC in banking?

It is a standard banking practice in some countries to request post-dated checks for the retail Loan repayments. When Loan are sanctioned, the lending institution collects post-dated checks in advance from the Loan recipient – at times for the full tenor of the Loan .

What happens if a post-dated check is cashed?

After that, the bank or credit union can cash the check before the date you wrote on it. If your bank or credit union cashed a check before the date you put on it while your notice was still valid, then it may be liable to you for any damages.

Can post-dated cheque be Cancelled?

The Supreme Court has ruled that stopping the payment of a post-dated cheque, issued to discharge debt or liability, is a criminal offence under the Negotiable Instruments Act.

What is an advantage of writing post dated Cheques?

What happens if a post-dated check bounces?

As per Section 138 under the Negotiable Instruments Act, 1881, Supreme Court’s cheque bounce case judgement, by the bill of exchange, means that the document will stay negotiable and will turn into cheque only on the date it will be payable on demand.

Can PDC be Cancelled?

The Supreme Court has ruled that stopping the payment of a post-dated cheque, issued to discharge debt or liability, is a criminal offence under the Negotiable Instruments Act. Cheques and similar instruments used in commercial transactions should inspire confidence, the court stated.

What is one disadvantage of writing post dated Cheques?

If the bank does not spot that the cheque has been post-dated, the cheque would then probably be paid before you intended or returned unpaid if you have insufficient funds in your account. This could potentially incur you charges and cause inconvenience to the recipient.

Why is PDC needed?

How do I get a PDC?

PDCs are delivered via email and SMS to the phone number and email listed in the flight plan filing form. The PDC will also be sent to the account holder’s email if the email listed in the filing form differs from the account email.

Will a post-dated check clear?

Generally, state law provides that if you notified your bank or credit union about a post-dated check a reasonable time before it received the check, your notice is valid for six months. During that time, the bank or credit union should not cash the check before the date you wrote on the check.

Can you stop PDC?

What happens if PDC bounces?

If the cheques are bounced the person can send notice to defaulter and if in even time payment is not made the person can file case in the court. Legal expenses will be bared by person who files the case. Case closure time is never specified it deponds on terms and the cases.

Is PDC safe?

PDCs are the most favoured system by lenders across the country, as it is considered “fail-safe”, in case the borrower defaults. In case of default in repayment through PDC, the borrower can be tried under Section 138/142 of the Negotiable Instruments Act, 1881.

How do I stop a post-dated cheque?

You can stop payment by instructing the bank. This may lead to cheque bounce case. It depend upon the reason why are you stopping the cheque. You may write a mail or send letter to the other party regarding not to deposit the said cheque with reason.

What are the consequences of paying post-dated cheque?

It will only become cheque on the date shown on it and prior to that it remains a bill of exchange under Section 5 of the Act. As a bill of exchange a post-dated cheque remains negotiable but it will not become a “cheque” till the date when it becomes “payable on demand”.