Cheques / DD valid only for 3 months from 1.4.2012

From yesterday 1.4.2012 banks will not honour cheques / Demand Drafts which are more than 3 months.   So please ensure that your cheques / DDs are presented for clearing within 3 months.

This follows Reserve Bank of India has issued directions vide RBI/2011-12/251 - DBOD.AML BC.No.47/14.01.001/2011-12, under which it has directed banks from 1st April 2012, not to honour cheques / Drafts / Pay Orders / Banker’s Cheques which are more than 3 months old as against the current practice of 6 months.

Validity of Cheques / Drafts / Pay Orders / Bankers Cheques reduced to 3 months

Reserve Bank of India has issued directions vide RBI/2011-12/251 - DBOD.AML BC.No.47/14.01.001/2011-12, under which it has directed banks from 1st April 2012, not to honour cheques / Drafts / Pay Orders / Banker’s Cheques which are more than 3 months old as against the current practice of 6 months.

Reverse Mortgage

Reverse Mortgage
Reverse mortgage is a model created for securing income for senior citizens, utilizing asset in his possession. The operation of this scheme is quite simple. Senior citizen who is the owner of a house can mortgage his house with a bank and either avail a loan either as a lumpsum amount or deferred payment on a periodic basis (monthly / quarterly / yearly). This amount can be either utilized to pay off old debts or to manage running expenses.

This mortgage amount should be repaid if the senior citizen decides to sell his home. Otherwise on his death the bank will sell this property and recover the mortgage amount. There is an option left with the inheritors of this property, they can settle the mortgage and retain the house

This is an excellent tool for senior citizens to have liquidity as well as retain their asset. However till now this scheme has met with limited success in India, due to lack of awareness and Indian culture of passing on property and not debt to the next generation.