Why cheque may be dishonoured

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Related Posts. Basic Finance. Asset Monetization-Why is the Government doing it? October 25, Comments 42 imgur says:. Vishal b adatia says:. Shruti Agarwal says:. Hi, Thank you for the read. In case of any further queries, feel free to write back. Hemant kumar says:. Ankit Jaiswal says:.

Hi Hemant, Thanks for writing us. Madhu says:. Malavika says:. Alpha Trading says:. Tista Sengupta says:. Welcome Gray You can also read How to write a Cheque to get a better understanding of the proper way of writing a cheque. Sleshi says:. Sleshi yilma says:. Hello Sleshi, Thank you for your comment Depending upon the internal regulations practiced by specific banks: multiple reasons can be written on the cheque return memo by using pre-determined codes separated by a comma in case of multiple reasons Usually, Code:1 represents insufficient funds while Code represents Signature mismatch You can read: How to write a Cheque to get a better understanding of the proper manner of writing a cheque.

Alphonce Okoth says:. Karri says:. Awsome website! I am loving it!! Will come back again. I am taking your feeds also. Hello Karri, Thank you for your comment. Venkataswamy says:. Hello Venkataswamy, Thank you for your comment. No problem, the cheque is still valid. Hello Imran, Thank you for your comment. You should consult your Bank. They will be able to guide you in a proper manner in this regard.

Raphael says:. Dinker sharma says:. Hello Dinker, Thank you for your comment. Security Agreement Download Free Templates. Internet banking service Agreement Download Free Templates. Club Rule Download Free Templates. Pratyush Raj. Aug 02, 20 min read. Author - Associate Aswini Ramesh The date of earliest known surviving english cheque is , so it is safe to say that the practice of issuing cheques have been passed over for 3 centuries approximately, but till date cheques are still one of the most convenient method of making payments.

What is a cheque? What is dishonour of a cheque? We understand that banks are already following the appropriate procedure keeping in view the above instructions to deal with the dishonour of cheques. However, it is considered necessary to streamline the procedure to be followed by all banks in this behalf.

It is therefore suggested that in addition to the existing instruction in respect of dishonoured instruments for want of funds, banks may follow the additional instructions laid down in para 4 of this circular which could cover all cheques dishonoured on account of insufficient funds and not only those relating to settlement transactions of Stock Exchanges.

Also, the bank may consider closing current account at its discretion.