Hey,
Before I started using the digital mode of payment, I used to transfer funds using cheques. So, I can tell you what is dishonour of cheque. A cheque is said to be dishonoured when a payee fails to deposit the cheque of the payer successfully. A payer is someone who issues a cheque to the payee while the payee is the one who deposits this cheque in the bank. The cheque is dishonoured if the bank refuses to pay the amount specified on the cheque.
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The payee should inform the payer about the dishonoured cheque and ask them about the reason for the same. If the payer thinks the cheque will be honoured again, they can resubmit it within 3 months after the date mentioned on it. However, the payer can face legal action if the cheque bounces again.
Reasons Why Cheques Get Dishonoured
Insufficient fundsNot having enough money in the account is a very common reason for dishonoured cheques. The bank can’t process the transaction if you don’t have enough money in your account.
OverwritingOverwriting anything on a cheque can become the cause of rejection. The bank will reject it because it looks suspicious.
Damaged chequeThe bank won’t accept any cheque in poor, ripped, or damaged condition. They also reject cheques if there are a lot of stains on them or if the details are unclear, so keep them in a readable condition.
Mismatched signatureCheques are among the few methods of payment that still rely on signatures. If the signature of the payer doesn’t match the recorded signature with the bank, the cheque will get rejected by the bank.
The date on the chequeAny fault or discrepancy with the date can result in disapproved or dishonoured cheques.
Read more:
What Happens if a Cheque Bounces
What is Non CTS cheque?
What is bankers cheque?
What is bearer cheque?
I hope you liked my answer on what is dishonour of cheque.
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Authors Of The Question
What is dishonour of cheque?
Daya
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2 Year
2022-09-07T19:35:19+00:00 2022-09-08T17:48:11+00:00Comment
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