To simply put, post-dated cheque is one which is drawn with a date which is after the date on which cheque was written. Lets understand with an example. Assume that today is 27th Jan and you are writing a cheque. Generally, if you write a cheque, you will write the current date of the cheque i.e., 27th Jan.

What is the law on post-dated checks?

Post-dated checks are perfectly legal. Post-dated checks are a risky form of do-it-yourself credit. The main reason the law lets banks cash post-dated checks is that its too hard to look at checks for their date. Processing 45,000,000 checks a day is tough enough, without looking at dates.

Can I deposit a cheque that is post-dated?

Sometimes a post-dated cheque is deposited before the date on the cheque. Banks have processes in place to look for post-dated cheques and do their best to make sure they arent processed early. The cheque can be returned and the amount credited back to your account up to the day before the date written on the cheque.

Do banks process 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 dont 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.

Is issuing post dated Cheques illegal?

Enforceability of Post Dated Cheques as per Section 138 So, they are enforceable as a negotiable instrument only when it becomes payable on demand. In accordance with the Supreme Court judgements on cheque bounce cases in 1998 of PDC, meaning post-dated cheque, will be considered as a bill of exchange.

Can I cash a post dated payroll check?

To cash a post-dated check, you should visit any nearby bank, credit union, or check cashing store (preferably from the list given above) along with a valid government-issued photo ID. Note that banks and credit unions are not required by law to cash the check on the future date given on the check.

What happens if I deposit a postdated check before the date?

Can You Cash a Postdated Check Before Date Shown? A signed check immediately becomes legal tender that a bank can deposit or cash before the indicated date on the check. Therefore, a bank will be able to accept a check if it is dated and signed.

Is post-dated check a negotiable instrument?

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.