The above cannot be the way it is for sure. Never heard of such a weird proposal. My take is that all the checks that were given as PDC can be en cashed immediately by the holder as a discounted cheque. The bank discounts the cheques immediately at a lesser value or less than par the difference amount is commission or income to the bank whereas the customer who is holding these cheques gets maybe 90-95% of the value of the cheques.

The banks then present the cheques on the date of each cheque and if it is dishonored then action is taken against you.