What is Post Dated Cheque

17 September, 2024

Synopsis

• A post-dated cheque is one that a payee can encash on a future date.

• When you issue a cheque must write a future date and not the date of issue.

• Post-dated cheques are valid for three months from the date mentioned on it.
  
  

When you open a new bank account, your bank gives you a welcome kit comprising some products to help with account management. The kit typically includes some pamphlets providing information about the bank, a passbook, a debit card, and a cheque book. The cheque book is the only instrument that you may hand over to someone else, specifically someone to whom you owe money. Sometimes, you may need to write a post-dated cheque. Let’s find out what a post-dated cheque is and how to write one.

What is a Post-Dated Cheque?

A Post-Dated Cheque is simply a cheque that a payee can encash on a future date. When you write such a cheque, you typically put a future date on it, instead of the date on which you are writing the cheque. The idea behind issuing a post-dated cheque is that the payee can deposit it into their account or withdraw money only on or after the future date mentioned on the cheque.

How to Write a Post -Dated Cheque?

There is no specific, different method of how to fill up post-dated cheques. You can write it in exactly the same way as you would write any other cheque. You must enter the payee’s name, the payment amount in words and number, and your signature. The only difference is that in the cheque’s date section, you must enter a future date instead of the date on which you are writing the cheque.

For instance, let’s say today is the 26th of a month. You are expecting your account to be credited with cash on the 5th of the following month. In such a case, if you were to issue a cheque to someone, you could write 6th or 7th as the date for them to encash the cheque – a date when your account certainly has enough cash to pay the payee.

You would typically write a post-dated cheque because you want the recipient to wait before they can deposit the cheque in their account.

Why Are Post-Dated Cheques Issued?

There could be many reasons why you would need to hand over a post-dated cheque to a payee.
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• Schedule a Payments
  A common reason why you would issue a post-dated cheque is because you may wish to schedule it for a future date. For instance, let’s say you need to pay the annual property tax for a property where you don’t live permanently. You visit it once or twice a year. In such cases, you may handover a post-dated cheque to the building secretary, to be encashed only after the new financial year commences.
  
  

• Pre-arranged payment 
  Pre-arranged payments are typically common in business transactions. You and your business partner may have agreed to a payment schedule, which extends over time. In such cases, you can issue post-dated cheques, which serve as a guarantee for your business partner, indicating that they would be paid on a specific date in accordance with the agreed-upon payment schedule.
  
  

• Pay Loan EMIs 
  Typically, when you take on a loan, the lender asks you to provide advance cheques, dated in accordance with the loan tenure. So, if you have opted for a loan with a 3-years tenure, you would need to give 36 post-dated cheques. The lender then deposits these cheques into their account each month to collect the loan EMIs. Here, the post-dated cheques serve as a guarantee of future payments.
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• Don’t Have Sufficient Funds 
  There could be times when you may not have sufficient funds in your account to pay for services or expenses. You may be expecting the funds to hit your account on a future date. If your service provider agrees to a late payment, you can write a post-dated cheque. Providing post-dated cheques when you don’t have sufficient balances prevents you from paying penalties associated with a bounced cheque.
  
  

Validity of a Post-Dated Cheque

A post-dated cheque is typically valid for a period of 3 months from the date mentioned on it. So, if the date written on the cheque on 1st April 2024, it will be valid until 30th June 2024. The recipient can deposit the cheque in their account anytime during this three-month period.

Get a Free Cheque Book Upon Opening an HDFC Bank Account

Your HDFC Bank account is your gateway to quick and efficient financial management. Depending on the type of Savings Account you open, you can get up to 25 free cheques per year. You can easily order the cheque book through your HDFC Bank internet banking account or through bank ATMs. Open Your HDFC Bank Savings Account today.

*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.