PDC Meaning: What is a Post Dated Cheque and How It Works

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.

What is a Post-Dated Cheque?

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 This means the money can only be withdrawn or deposited on or after that date, not before.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. 

How to Write a Post-dated Cheque? 

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: 

• Fill in the payee’s name
• Enter the amount in both words and numbers
• Sign the cheque clearly
• Put a future date instead of today’s date

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.

What is the Post-dated Cheque Validity? 

Here are a few essential points to know:

• As per the rule, a cheque written for a future date also comes with a validity period
• The validity for these cheques is usually 3 months from the date of issue
• If you draft a cheque for 1 January 2024, it will remain valid until 31 March 2024
• If you present this cheque before or after the aforementioned dates, the bank may not honour it

What is the Rule for Writing a Post-dated Cheque?

Here are some simple rules you can follow when writing a PDC cheque:

• Use a future date: Do not write the current date. Always mention a future date. Ideally, a date when you want the cheque to be encashed.
• Fill in other details as usual: Write the payee’s name, amount in words and numbers and sign the cheque like you normally would.
• Inform your bank: Share written instructions with your bank about the encashment date. This prevents the cheque from being processed too early.
• Avoid penalties: Sending clear instructions helps avoid accidental clearance, which can lead to penalties or overdraft fees.

Also Read: What is Cheque Leaf?

What are the Penalties for Dishonouring a Post-Dated Cheque?

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: 

• Imprisonment of a minimum of 1 and a maximum of 2 years
• Fine equal to or double the cheque amount
• Both, depending on the case

Things to Keep in Mind When Writing a Post-Dated Cheque

If you are making a payment using post-dated cheques, keep the following points in mind. 

• Understand the legal implications of what happens if a cheque is post-dated
• Send written instructions to your bank for the date of the payment
• Maintain a sufficient balance before the encashment date
• Write the details carefully and recheck them before sending the cheque 
• Make sure the cheque gets encashed on or after the mentioned date
• Check with your bank to ensure they allow the deposit of such cheques
• For cheques made on the company’s behalf, make sure the company’s accounts books have a record of this transaction

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. 

At Fibe, you can apply for a 100% digital Online Personal Loan of up to ₹5 lakhs at an affordable interest rate. With 2 minutes of disbursal, minimum paperwork and no pre-approved charges, you can opt for a loan to manage all your urgent financial needs. Download our Personal Loan App or visit our website to apply now! 

FAQs on Post-Dated Cheques

Why is it called a post-dated cheque?

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. 

What is the time limit for a post-dated cheque?

Once drafted, these cheques are valid for 3 months.