If you think this can be a very simple thing as to WHY your cheque may bounce… it is not. There are lot of factors to it, and here I am discussing the same today. Or atleast we think we know but at times ignore some important things for dishonour of cheque. Here are 6 main reasons why your cheque bounced.
Cheques are used by a vast majority of people having bank accounts, and with the recent initiative of the Jan Dhan Yojana by Prime Minister Narendra Modi, the number of Indians with bank accounts has gone up. While not all people having a bank account use cheques, most us do so and we think we know all about writing cheques while infact a lot of us don’t. Even if we do know about writing cheques, are we fully aware of reasons why a cheque bounces? Or what is a bounced cheque?
Well a bounced cheque simply means a cheque that the bank refuses to pass or honour and is intimated to the issuer and the receiver and a nominal penalty is charged. A bounced cheque also invites legal action is the receiver wishes so, and there are often cases where [Continue reading]