What is the impact of issuing post-dated Cheques?

According to the meaning of post-dated cheque itself, once PDC becomes a cheque i.e. from the date it is payable on demand, it is then applicable as issued to meet a legitimate liability. But only due to insufficient funds or the reasons specified in the Act, will the cheque be dishonoured.

What is an advantage of writing post-dated Cheques?

It acts as a form of instalment payment system where the payer does not have to pay the amount at one go or at the specified time. It helps the payer to cover his position for lack of funds by buying some time before he makes future payments. It helps in the seamless operation of business.

What is a PDC cheque?

Post Dated Cheques
It is a standard banking practice in some countries to request post-dated checks for the retail Loan repayments. When Loan are sanctioned, the lending institution collects post-dated checks in advance from the Loan recipient – at times for the full tenor of the Loan .

What is the definition of post-dated?

1a : to date with a date later than that of execution postdate a check. b : to assign (an event) to a date subsequent to that of actual occurrence. 2 : to follow in time.

Does date matter on checks?

Because they might not always have enough money in their accounts on the day they write those checks, some folks will postdate their checks so that they aren’t deposited or cashed until after that date. Unfortunately, the fact is that there’s generally no actual obligation to honor the date on a check.

Is a post-dated check negotiable?

Post-Dated Checks A negotiable instrument can be made payable “on demand” or “at a definite time.” (UCC § 3-104.) A post-dated check is an order to pay the bearer at a definite time in the future.

What does post dated mean?

: to give (something) a date that is later than the actual or current date. : to exist, happen, or be made at a later time than (something) See the full definition for postdate in the English Language Learners Dictionary.

In which account are post dated checks received classified?

receivables
Postdated checks received are classified as receivables.

What does no post date mean?

(also postdate) to write a date on a document, especially a cheque, that is later than the date on which you are writing it: If you cannot trust the salesman to wait until the date on a cheque before presenting it, then post-dating it is pointless.

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