7 Reasons Why Your Cheque Is Dishonoured

If your cheque has been bounced, then one of the following could possibly be a reason. Also remember
these reasons while writing a cheque next time to avoid dishonour of your cheque by bank in future.

1. Insufficient Funds
Salaries sometimes reach late in accounts leaving insufficient funds in your account which may lead to
bouncing of cheque. While writing a cheque, make sure that you have sufficient funds in your bank
account.

2. Irregular Signature
Bank will not honour a cheque if the signature of the drawer on the cheque don’t match the specimen
signature available with the bank.

3. Alterations
Alterations on cheques are not allowed. Even if you sign the alteration to verify it, the cheque will not be
considered as valid and will not be honoured by the bank.

4. Post-dated Cheque
A post-dated cheque is the one on which the date which is mentioned is yet to come. Post-dated cheques
are to be presented to the banks on a future date. For instance, a cheque written on 15th Jan 2016
bearing a date of 30th Jan 2016, is a post-dated cheque. A cheque will be dishonoured if it is presented
to the bank before the date mentioned on it.

5. Stale Cheque
If a cheque is presented to the bank for payment after three months from the date mentioned on the
cheque it is called stale cheque. After expiry of that period, the cheque will be dishounoured and no
payment will be made by banks against that cheque.

6. When Payment Is Stopped

If the drawer asks the bank to stop payment and not to pay for a cheque already issued, in that case, the
cheque will not be honoured by the bank.

7. Frozen Account
If government or court has ordered that a person’s account has to be frozen, in such case, the bank will
dishonour all the cheques bearing that account number.