Post-dated Cheque-Normally, It is seen that some Cheque books issued by the bank are already having bearer cheques or order cheques. Because you will see a word written on the cheque “or bearer”, “or order”. And these words define a cheque as a bearer cheque or an order cheque that can be used for payment to someone but is not safe. And these cheques can be marked as Post-dated cheques for payment of bills on future dates.
In simple words, a cheque is a transferable instrument to send and receive money without any physical transfer of cash. Hence cheque writing should do safely.
So, With the help of a post-dated cheque, you can give instructions to pay on any future date by mentioning a future date on the cheque.
Contents of this post
What is the Post-dated cheque?
Many times, A trader used to give a post-dated cheque to their supplier to maintain the money flow in their accounts. When a cheque is issued with the future date/upcoming date then that cheque will be called a post-dated cheque. Because a cheque can not be cleared before the date of cheque hence you will have to deposit or cash out on the date of cheque or after the date of the cheque.
What is the meaning of a Post-dated cheque?
Post-dated cheque means a cheque that has a future date. It means you can not present that cheque in the bank today or before the date of the cheque.
These types of cheques bear a later date of being encashed. Even if the bearer presents this cheque to the bank immediately after getting it, the bank will only process the payment on the date mentioned in the cheque. This cheque stands valid past the mentioned date, but not before.
Image of a Post-dated cheque
How can you identify a Post-dated cheque?
You can identify a cheque as a post-dated cheque when you will see a date on the cheque as the future date and not have a present date. For example- let’s suppose today is date-07.10.2022 but the cheque has a date- of 12.12.2022 then it will be called a post-dated cheque.
What are the features of a Post-dated cheque?
These are the feature of the post-dated cheques-
- It is a negotiable instrument.
- It can not be encashed before the date of the cheque.
- A cheque can be any type of cheque
- You will not see the present date.
- This cheque can be cleared on the date of the cheque or after the date of a cheque for up to 3 months.
Why should you issue a post-dated cheque?
You should use the post-dated cheque for giving payment to someone or your suppliers-
- To pay at a future date.
- Gives instruction to clear the cheque in the account of the named person only as per the date of the cheque.
- To get the balance amount up to the due date of the cheque.
- To make a better fund flow.
What is the remembered point while issuing a Post-dated cheque?
- A certain future date should be mentioned on the cheque.
- Should be filled properly.
- Payee’s name should be mentioned on the cheque.
- It can be more secure by making it a/c payee. the word “A/c Payee” should be mentioned between the two parallel lines.
- Or bearer word should be stricken off.
How do you fill out a Post-dated cheque?
These are the steps to fill out a post-dated cheque-
- Firstly, Take a fresh cheque.
- Then enter the certain future Date in the right top corner
- Then enter the Recipient Name.
- Now, Fill in the amount in numbers.
- And then write the amount in words.
- Then, Sign the cheque.
- And make sure it is not a bearer cheque if the word ‘ or bearer’ is written then it should be strikeout as this “
- Then must be crossed with two parallel lines on the left top corner or anywhere on the cheque.
- And the word “A/c Payee” must be written between the two parallel lines.
What is the difference between a post-dated cheque and an ante-dated cheque?
|points||Post-dated cheque||Ante-dated cheque|
|Meaning||This cheque has a future date. This cheque can be encashed or cleared on the date of the cheque or after the date of the cheque.||This cheque has a date before it is presented in the bank. This cheque can be encashed till the completion of three months from the last date.|
|Identification word||A future date is on the right corner of the cheque.||The date before it is presented on the right corner of the cheque.|
Should I give the Post-dated check to my suppliers?
Yes, you can provide a post-dated check to your suppliers for making a perfect flow and for balance maintenance. If you want to be secure from fraud or misuse of cheques then you should always provide an a/c payee cheque and should not provide a bearer check to your suppliers at any time. You should check always the word mentioned over the cheque ” or Bearer” and must strike out ”
or Bearer“. You can provide an order cheque to your suppliers but should also make it an A/c Payee cheque or crossed cheque.
A/c Payee cheque should provide because it instructs the bank to pay only in the a/c of the named person and this is safe for you. And an A/c payee check can be a post-dated check.
Who can withdraw the Post-dated cheques?
The person whose name is mentioned over the cheque means the recipient or any third person if endorsed or authorized can encash or deposit that cheque into his account by filling out a deposit slip. It can depend on the further type of post-dated check that it is the bearer, order, crossed or account payee, etc.
Is the Post-dated check an open cheque?
A cheque is generally known as an Open cheque when it is not crossed whether it is made payable to the bearer or order. So a Post-dated cheque can be an open check if that is not crossed.
How long is a Post-dated cheque valid?
Normally, a cheque will be valid for up to three months from the date mentioned in the cheque. Hence after three months from the date on the cheque, it will be invalid and can not be cleared in the account of the named person. whether that cheque is post-dated or Anti-dated.
How can I cash my Post-dated check?
It can be deposited into the account of the person whose name is mentioned on the cheque and the named person will be able to deposit it into his account. And it can be encashed by a third person if the cheque is endorsed or authorized by presenting it in the bank.
Faqs on Post-dated cheques
This cheque can be also another type of cheque. There are seen many types of cheques which you need to understand. Here is the link for the different types of cheques provided plz go through and read- the types of cheques
Yes, the person whose name is mentioned on the cheque can deposit the cheque into his bank account, and also an endorsed third person can deposit.
Yes if it is a bearer cheque.
Yes, It may be safe if it is crossed or a/c payee cheque. Because account payee cheques can be deposited into the account of the named person only. And it can not be encashed.
Yes, Cash can be withdrawn if that is a bearer cheque means, the holder of the cheque can present that cheque for encashing in the bank.
A cheque will be a post-dated cheque if it has any future date. This cheque can be utilized on the cheque date or after the cheque date.
it’s not mandatory to sign behind the cheque. but in case it is self cheque or endorsed then a signature is required on the back side of the cheque.
- Exceeds arrangement meaning for cheque bounce
- EXCEEDS ARRANGEMENT (2)- REASON OF CHEQUE RETURN
- EFFECTS NOT CLEARED; PRESENT AGAIN (3)- REASON OF CHEQUE RETURN
- CHEQUE RETURN REASONS LIST IN BANKING
- Refer to Drawer (04-09) cheque return reasons
An Accountant, GSTP, GST blogger, Website Creator, SEO Builder & Co-founder of the website https://gstportalindia.in for the help of GST Taxpayers of India. Having a perfect accounting experience of more than 10 years in a Private Ltd Company.