PDC Full Form Friends, in this Artical, we’ll look at the full form of PDC. A post-dated check (PDC) is a check that has been issued ahead of time by the issuer and has a fixed M time on it. After then, the date for sending the check should be the same. The check will then be voided.
PDC Full Form
PCD Full Form is Post-Dated Cheque. PCD – Post-Dated Cheque is the full version of PCD. PCDs are used in the pharmaceutical business for marketing and distribution rights. PCD (Promotion and Distribution) is essentially a franchising business. Let us first define what a franchise business.
PCD: Propaganda cum Distribution
When a company permits another individual or company to sell their items on their behalf. This is referred to as franchising. In general, the franchisee acts in accordance with the company’s principles and work culture.
What is PDC?
A PDC is a check that is handed to the receiver ahead of time by the issuer. However, checks can only be cashed on or after the specified date.
Post-Dated Check is abbreviated as PDC. A PDC is a check that is written with a date that is later than the date of the check. Simply put, a post-dated check is one that is written with a future date on it.
What is the purpose of a PDC check?
When the issuer does not have enough cash to pay or wants the payee to wait for the check to be paid, a PDC check is issued. This form of check is merely a guarantee of payment at a later date. This contributes to the preservation of confidence.
PDC have a number of advantages.
- No deception is permitted: A check that has been post-dated is legitimate. The issuer is obligated to make the payment on time.
- Extra time for payment: A post-dated check gives the issuer more time to pay the check. When the issuer does not have enough funds or wishes to wait for payment from the recipient for any reason, A is quite useful.
- The payee’s financial happiness stems from the fact that the cheque will be paid on demand on the date specified on the cheque.
- Maintaining Trust: This is merely a written assurance. This contributes to the preservation of confidence.
PDC have a number of drawbacks – PDC Full Form
- Payment Delay: Late payments result in financial loss. The PDC allows the issuer to work overtime. However, the recipient does not benefit from the extra time.
- Obligation: Even if required, the check cannot be cashed before the date specified on the check. The recipient will have to wait until the due date to get the package.
Conclusion – PDC Full Form
It’s important to remember that any check is good for the next three months from the date written on it. As a result, the check must be deposited on time, or else it would bounce. As a result, we must use greater caution while dealing with PDCs. In order for the check to be cashed on time.
Frequently Asked Questions
What happens if the PDC is returned as undeliverable?
Section 138 of the Negotiable Instruments Act allows for legal action.
Is it possible to cancel PDC?
The Supreme Court ruled that cancellation of the PDC is a violation of the Negotiable Instruments Act.