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Can you please tell me various reasons of cheque bounce as per law in India?

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Can you please tell me various reasons of cheque bounce as per law in India?

Ans.  

There are various reasons of cheque bounce in India as given below:

  • Signature mismatch;
  • Account closed;
  • Insufficient Funds in Account;
  • Overwriting on the cheque;
  • Expiry of cheque i.e.if cheque not presented in bank for a period of 3 months from the date of cheque
  • Payment stopped by Drawer/Countermand of cheque
  • Disparity/difference in the words and figures mentioned on the cheque
  • Cheque doesn’t bear the seal of the company
  • Any contradiction/mismatch related to Account information
  • Non-presence of signature of both parties in case of joint account;
  • Death or insolvency or insanity of the party on Drawer/Drawee
  • Crossed cheque or Alteration in cheque
  • If there is any issue related to genuineness of the cheque, etc.

If you have any other query, feel free to contact us. We will be happy to help you.

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