A cheque is said to be dishonoured or bounced associated to it is presented for payment to a bank but it is not paid because of some excuse or the relationship.
A cheque is said to be dishonoured or bounced associated to it is presented for payment to a bank but it is not paid because of some excuse or the relationship.
The subsequent to can be the reasons for bouncing of a cheque in India:
- Signature is not matching
- There is overwriting in the cheque
- Cheque was presented after lapse of six months, i.e. after the cheque has expired
- Account was closed
- Insufficient funds in the account
- Payment stopped by the account holder
- Opening bank account insufficient
- Disparity in the words and figures mentioned concerning the cheque
- In warfare the cheque is issued by a company, the same does not bear the seal of the company
- Mismatch in account number
- In lawsuit of joint account where both signatures are required, single-handedly one sign is there
- Death of the customer
- Insolvency of the customer
- Insanity of the customer
- On the order of the garnishee
- Crossed cheque
- When a cheque is issued adjacent the rules of trust
- Alteration in cheque
- Doubt in genuineness of the cheque
- Presented at the muddled branch
- Crossing limit of overdraft (OD)
Cheque bouncing is a criminal offence in India. The as well as than tips and steps will have enough keep for as a useful lead for cases of cheque bouncing as per the provisions of the Negotiable Instruments Act: