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Getting your cheque bounced or dishonoured is not only unethical, it’s punishable. If your cheque gets bounced due to insufficient funds in your account, a criminal case can be initiated against you. However, insufficient funds are not the only reason your cheque can get bounced. There are multiple reasons for your cheque to get bounced. Here are the 6 major reasons for cheque getting bounced or dishonoured:-

cheque
  1. Insufficient Account balance
  2. Expired validity of the cheque
  3. Overwriting
  4. Damaged cheque
  5. Signature mismatch
  6. Mismatch of amount or digits

These are the 6 major reasons due to which your cheque can get bounced. However, there are many other small reasons too.

  1. If the name of the payee is absent.
  2. If the bank receives any information about the death or lunacy or insolvency or bankruptcy of the payee.
  3. If a court of law has given order to stop the payment on the cheque.

There are certain reprecussions as well if your cheque gets bounced. (Why you should avoid getting your cheque bounced).

It is very important to know what happens after your cheque bounces. (What happens when your Cheque bounces?)

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My name is Ayush Ranjan, I'm a first year law student at Symbiosis Law School, Noida. I intend to bring legal content in easy language.

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