What Is a Post-Dated Cheque? Meaning, Validity, and How To Write

  • Published on: 25 Jan 2024
What Is a Post-Dated Cheque? Meaning, Validity, and How To Write

A post-dated cheque is a negotiable instrument that promises payment for future dates. When writing this cheque, the drawer adds a future date for encashment based on the need and fund availability. 

Thus, a post-dated cheque comes with a validity period specified by the law. Knowing about this type of payment method ensures that you can agree to payment in advance. However, you must know the rules and process for writing such cheques to ensure smooth transactions. 

Read on to learn what is a post-dated cheque writing process, its rules, validity, penalties and more.

How to Write a Post-dated Cheque?

This legal tender allows the depositor to withdraw cash from the drawer’s account on a future date. In simple terms, with this cheque, individuals and companies can make payments to another individual or company on a fixed date. 

This safe option helps you make secure payments conveniently. Furthermore, if you don’t have sufficient funds, this instrument gives you some time to arrange for funds while giving assurance of payment to the receiver.   

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?

Once you understand the meaning of a post-dated cheque, writing it is very simple. This is because most information is similar to a regular cheque, with only one key difference between them. You must not write the current date in the given column; instead, write a future date for encashment. 

 However, you are also required to send your bank written instructions on when the cheque allows encashment. This helps banks avoid premature withdrawals, which can lead to penalties to the payee and overdraft charges. 

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 one and maximum of two 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 implication of what happens if a cheque is post-dated
  • Send written instructions to your bank for the date of the payment
  • Maintain 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 deposit of such cheques
  • For cheques made on the company’s behalf, make sure the company 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.

Does the bank accept post-dated cheques?

Yes, banks accept all duly signed post-dated cheques with signatures. However, these cheques should be valid for a certain period. 

Can post-dated cheques be cancelled?

To stop fund withdrawal from post-dated cheques, you must give your bank an instruction for not clearing the payment. Simply write a letter or an email to your bank with the required details and reason for such action.


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