PDC Full Form

Post Date Cheque is the full form of PDC.

A payer issues a Post Date Check for a future date, and the payee can release the funds by presenting the cheque on the due date.

A cheque is a financial instrument used to transfer payments, pay for services, and so on. When you write a check, you’re instructing your bank to send a specific amount of money from your account to the payee. A Post-Date Cheque is one that is written with a due date. To put it another way, a Post-Dated Check is one that is drawn for a future date rather than the one on which it is drawn. A PDC can also help you make a future transaction.

How To Issue A Post-Dated Cheque?

Payer always issues a post-dated cheque, which is a negotiable instrument for a future transaction. For example, a manufacturing company need urgent raw supplies to complete an order but lacks the necessary finances. In this situation, the owner decides to write the raw material vendor a Post-Dated cheque with a one-month due date. In this instance, the manufacturing unit owner can resume production without interruption, and the raw material seller can rest assured that they will be paid in the future.

What Are The Possible Reasons To Issue A Post-Date Cheque? 

A Post Date Cheque is issued for two main reasons:

  • When you don’t have enough balance

People usually write a Post Dated Check when their account balance is insufficient to cover the amount owed.

  • When payments are purposefully delayed

In some cases, the drawer may wish to intentionally postpone payments or make a payment on a specific day. It’s possible that the payer and the payee have a personal understanding.

What Happens If a Post-Dated Cheque Bounces?

If a Post Dated cheque is bounced, then the payee or the person to whom the payment has to be made has a right to take legal actions and send a notice to the defaulter. If the defaulter agrees to pay after receiving a notice then the payments will be cleared in 15 days maximum. But if the defaulter is refusing to pay, then the payee has to file a court case that can take up to 8-10 months to resolve. 

Can We Release a PDC Before The Due Date?

In nations such as the United States, Canada, and the United Kingdom, banks will usually release funds if the beneficiary deposits the check before the due date. Yet, in nations such as Australia and India, the banking system waits until the payment is due before clearing it.

For How Much Time A Post-Dated Cheque Is Valid After A Due Date?

A post-dated cheque has payment validity even if the payee misses the payment deadline. In different nations, the validity time varies due to varying banking rules.

India The validity period lasts up to three months
USA The validity period lasts up to six months
Singapore The validity period lasts up to six months
Australia The longest validity period, for up to 15 months.
China The lowest validity period, for up to ten days.
Canada The validity period lasts up to six months

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