What Are Cheque Bounce Cases
The cheque can bounce for a variety of reasons, including an incorrect date, a mismatch between the figures and words of the payment amount, a mismatch in signature, or a damaged cheque, payment stopped by the buyer, insufficient funds etc. However, these are some important reasons for cheque bounce, and the drawer can issue another check to correct the error and pay the money to the payee. What are Cheque Bounce Cases When a cheque is brought to a bank for payment and bounces, the bank will return the cheque with a return memo outlining the reason for the return. If the bank rejects the cheque because of insufficient funds, notice can be given to the drawer, and legal action may be taken against him. When a cheque bounces owing to insufficient money and is returned by the bank, the payee should write a legal notice to the cheque's drawer requesting payment. In India, cheque bounce is a punishable violation under Section 138 of the Negotiable Instruments Act of 1881. The legal not...