Reviewed by: Fibe Research Team
There are types of cheques that can’t be cashed immediately. One such example is a PDC cheque. The PDC full form is Post-Dated Cheque. These cheques are legally valid in India for 3 months from the date written on them.
As per RBI rules, banks are not allowed to process a PDC cheque before the date mentioned. If someone tries to encash it early, it will be declined. That’s why it’s important to know the post dated cheque meaning, its validity and banking rules before issuing or accepting one.
A PDC cheque is a regular cheque, but with a future date written on it. This means the money can only be withdrawn or deposited on or after that date, not before. It’s regularly used for scheduled payments like rent, EMIs or loan installments.
The PDC meaning is simple. It lets you confirm a future payment in advance and keeps things on record. And knowing how to fill one correctly will make it easier to manage your recurring payments.
Writing a post-dated cheque is the same as writing a regular cheque. The only change is the date you put on it. Here’s how to write one:
Assume it’s the 5th of the month. Your salary will be credited on the 10th. You can write a post-dated cheque for the 10th. This way, it won’t be cashed out early. It gives you time and assures the receiver of payment.
Here are a few essential points to know:
Here are some simple rules you can follow when writing a PDC cheque:
Also Read: What is Cheque Leaf?
As per Section 138 of the Negotiable Instruments Act, all cheques with a future date fall under legal tender. So, if your cheque bounces, you will be facing legal penalties for dishonouring it, which are as follows:
If you are making a payment using post-dated cheques, keep the following points in mind.
With these facts in mind, you can avoid any discrepancies or errors that can hinder the payment through a post-dated cheque. But if you do not have a sufficient balance in your account to clear your cheque, then taking a personal loan from Fibe can help you get the required funds.
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This is a cheque dated for deposit or encashment at any future date. Since the funds are withdrawn after the date mentioned on the cheques, they are called post-dated cheques.
Once drafted, these cheques are valid for 3 months.