What is pdt in hdfc cheque?

Cheques drawn on Metro / Non-metro cities where HDFC Bank has a branch, credit will be given on receipt of clear funds. A bank into which a person has deposited a cheque, and must collect the money from the account of the writer of the cheque. This code is printed on every cheque leaf in your personal or company chequebook. Find out the fees & charges applicable on Cheque payment service provided by HDFC Bank. 10 things to keep in mind when writing a cheque.

Whether a post-dated cheque may be cashed or deposited before the date written on it depends on the country. A Canadian bank, for example, is not supposed to process a post-dated cheque and if it does so by mistake, the cheque writer may ask their bank to correct the error. In the United States and the UK, post-dated cheques are negotiable instruments and can be drawn upon at any time, while in India and Australia post-dated cheques are not payable until the date written on the cheque.

Under Australian law a post-dated cheque is valid under the Cheques and Payment Orders Act 1986.

As well, under Section 61 of the Act, part 2 reads;

The Commonwealth Bank's rules and conditions for cheques (2014: Section 1.7.6 'Dishonour of cheques') clearly state that a cheque will be dishonoured if it is presented before the post-date as written on the cheque for the reason that, '...the cheque bears a date that is in the future. This is known as a post-dated cheque and it cannot be paid until that date arrives.'

While this is a sound interpretation of Australian law, for insurance reasons the bank protects itself from possible attack with the condition (2014: Section 1.7.1 'Using your cheques '): 'You authorise us to pay a post-dated cheque (one which is dated with a date in the future) drawn on your account and presented for payment at any time before the date of the cheque arrives.'

The Australian Taxation Office require that cheques made for tax payments 'must not be post-dated'. The Australian Federal Police in their information to small businesses on avoiding fraud advise: 'Do not accept post-dated or pre-dated cheques'.

In Brazil, the drawer may seek damages in Justice if their cheque is cashed in before its due date, according to the jurisprudential orientation of the Superior Court of Justice, as per Summary No. 370 of such court.

Under the clearing rules of the Canadian Payments Association, a post-dated cheque cannot be cashed prior to the date written on it. If a Canadian financial institution inadvertently accepts and processes a cheque before the due date, the cheque writer may ask their financial institution to return the amount until the day before the cheque should have been cashed.

Post-dated cheques in Indian law are considered under the Negotiable Instruments Act, 1881. Post-dated cheques are common and enforceable. In 1998, the Supreme Court ruled that a post-dated cheque is a bill of exchange and does not become payable on demand until the date written on the cheque

In India the issue is complex and mainly revolves around section 138 of the Negotiable Instruments Act, 1881. The two major issues before the courts are:

1) Post-dated cheques that are stopped by the bank or issuer, causing problems for whoever is to be paid by the cheque for goods or services provided and;

2) the reverse, in which a person is promised goods or services but does not receive them and has to stop the cheque.

In Serbia post-dating cheques is a customary practice in the retail industry. The retailers will usually accept post-dated monthly cheque payment installments up to several months in advance allowing their customers to pay for expensive goods as a sort of a line of no interest credit.

In the UK the legislation is clear; 'A cheque is a bill of exchange drawn on a banker payable on demand'. Under the Bills of Exchange and Banking Act 1882, part 10, bills of exchange are payable on demand and in part 13, 'A bill is not invalid by reason only that it is ante-dated or post-dated.' In the United Kingdom, post-dating a cheque carries no legal weight and so such a cheque can be cashed before the due date. However, a bank may refuse to honour a cheque if the post-date is noticed; otherwise, the payer has no right to take any form of legal action against the bank for letting the cheque be processed.

It is common for the terms and conditions of current accounts to state that post-dated cheques should not be written and will be dishonoured if detected. In some instances a post-dated cheque may be retained by the bank and paid on the due date if that date is only a few days away. Some UK organisations do not accept post-dated cheques as well as some Government Departments, while paying income tax or voluntary National Insurance may only be done with post-dated cheques with permission from HM Revenue and Customs.

In the United States, national banks are permitted to pay checks even though payment occurs prior to the date of the check. According to the Comptroller of the Currency: "A check is a negotiable instrument—the payee, the person to whom the check is written, may negotiate it through the banking system at any time" and check writers seeking redress must restrict themselves to pursuing the payee.

Nonetheless, if "the customer has given notice to the bank of the postdating describing the check with reasonable certainty" the Uniform Commercial Code requires that the notice to be honored. In practice, whether the check writer has any redress against the financial institution where the payee deposited the check may depend on whether it can be shown that the check was accepted over the counter without examination.

You need to share the following details of the issued cheque at least 24 working hours before the cheque is presented in clearing.

When the payee submits the cheque for realisation via CTS clearing, details (account no./cheque no. and cheque amount) will be validated which have been provided to the Bank through Positive Pay.

Disclaimer: HDFC Bank will be providing services of Positive Pay as long as the said access is provided to the Bank by NPCI.Customers need to ensure that the data submitted is accurate and void of any mistakes / errors since the bank will validate the cheque issuance basis the data submitted.Positive Pay is an additional risk mitigation measure and is not a mandatory requirement for instrument processing.

Please note the following for Positive Pay System for CTS:

Step 1: Issuer of cheque (drawer) on writing the cheque must submit the below specific details of the cheque in the below sample email format with the attached excel sheet, as a confirmation of the cheque issued.

The details need to be sent to any one the following email ID of the Bank (as applicable):

For customers from northern regions like – Punjab, Uttar Pradesh, Haryana, Himachal Pradesh, Jammu and Kashmir, Rajasthan, Uttarakhand, Delhi.

For customers from southern regions like – Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, Telangana.

For customers from eastern regions like – West Bengal, Odisha, Assam, Bihar, Jharkhand, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim.

For customers from western regions like – Maharashtra, Gujarat, Madhya Pradesh, Goa, Chhattisgarh.

Please note: Email IDs mentioned above are regional email IDs and hence kindly send the email to the respective email IDs as per your location only.

Step 2: The drawer’s Positive Pay request will be acknowledged via an auto-acknowledgement email.

Step 3: On receipt of the email from the registered email ID of the cheque issuer (drawer), the Bank will cross verify the details.

Step 4: The Bank will accept or reject the Positive Pay request and a confirmation of acceptance or rejection will be sent to cheque issuer (drawer) via email.

Step 5: If there is rejection on account of data discrepancy, then the Issuer (drawer) will have to initiate a fresh Positive Pay request via email giving correct details of the cheque. In case of rejection on account of un-registered email, the customer needs to initiate fresh request from their registered email ID only.

Note: This service is applicable only for cheque received under CTS clearing of Rs. 50,000/- and above.

MUMBAI, April 21 (Reuters) - The Reserve Bank of India (RBI) has allowed HDFC Bank Ltd (HDBK.NS) and Housing Development Finance Corp Ltd (HDFC) (HDFC.NS) selective regulatory relief to smooth out the merger between the two organisations, set to conclude by July this year.

The central bank has permitted the bank to meet priority sector lending requirements in a staggered fashion over three years, HDFC Bank said in an exchange notification on Friday.

These requirements, which include lending to weaker segments of the economy, are linked to an organisation's loan book.

At the end of the first year after the merger, the combined entity will need to include one-third of HDFC's loan book to calculate the amount of priority sector lending required.

Priority sector lending on the remaining part of the loan book would need to be met over the next two years, HDFC Bank said in the statement.

However, immediately after the merger, the combined entity, which will be called HDFC Bank, will need to comply with requirements to hold a certain level of cash reserve ratio, statutory liquidity ratio and liquidity coverage ratio on the entire merged balance sheet.

Earlier this week, Reuters reported that the bank and the housing financier had raised adequate liquidity to meet these requirements from the start.

Investments and associates of HDFC will be allowed to continue as investments of the combined HDFC Bank although the bank will need to exit a few select ventures over time.

However, the RBI said that before the merger closes, HDFC Bank or HDFC can increase their shareholding to more than 50% in HDFC Life Insurance Co Ltd (HDFL.NS) and HDFC ERGO General Insurance.

But HDFC Bank has two years to both exit HDFC's investment in HDFC Education and Development Services and reduce its stake in HDFC Credila Financial Services to 10%.

As per norms applicable to the banks, HDFC Bank will have to transition all HDFC's retail and small business borrowers to an external benchmark, like the repo rate, within six months of the merger.

Housing finance companies have greater flexibility than banks in providing loans against shares. The RBI has allowed HDFC Bank to allow existing loans against shares within the HDFC portfolio to continue until maturity, the notification said.

A few key issues still await clarity from the RBI, the bank's management said at an analyst call on Friday.

The merged entity will be seeking clarity on whether HDFC's borrowings, including those from banks, will be allowed to continue till maturity, said the bank's CFO Srinivasan Vaidyanathan on the call.

HDFC, as a non-bank lender, is allowed to borrow from banks but HDFC Bank is not allowed to borrow from other banks.

Clarity is also needed on loans given by HDFC for land and to core investment companies, he said.