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What Are The Consequences of Cheque Being Dishonored?

What are the consequences of cheque being dishonored? It’s important to know what could happen if your cheque is dishonored. A cheque that is dishonored can have a few different consequences. The account holder may be charged a fee, and the payee may not receive the funds they were expecting. In some cases, the cheque may be returned unpaid, and the payee may need to take additional steps to get their money. Dishonoring a cheque can also damage your relationship with the payee, and make it difficult to write future cheques.

What is a dishonored cheque?

A dishonoured cheque is a negotiable instrument that has been returned by the bank unpaid due to insufficient funds or other issues. It occurs when the account holder does not have enough money in their account to cover the amount of the cheque. This can also occur when there are irregularities in the signature on the cheque, when a post-dated cheque is presented before its due date, or when a stop payment order has been issued by the account holder.

The Consequences of Cheque Being Dishonored or Bounced

1. Insufficient fund

If there is not enough money in the account in this case money cannot be withdrawn by cheque. For example, if someone gives you a cheque for one lakh rupees. After receiving the cheque you get some time to withdraw the money. You think that you will withdraw the money now or later but the account holder who needs the money for some reason. The account holder thinks that the fifty thousand rupees will be withdrawn today and tomorrow I will deposit fifty thousand rupees in my bank account and withdraw fifty thousand rupees but did not deposit fifty thousand rupees. If you go to withdraw money and don’t have enough balance, you won’t be able to withdraw money.

Or suppose you were given a cheque of one lakh rupees, on the day the cheque was given there was enough balance of one lakh rupees in this account. You go to bank for withdraw the money in next day but the next day for some reason the bank deducts five thousand rupees as a charge and the balance goes below one lakh rupees, in that case the money cannot be withdrawn or cannot be transferred through this cheque.

2. The numbers and words do not match.

Amount of money in numbers and words where not equal. For example, suppose you write one lakh rupees in numbers but write one lakh ten thousand rupees in words, in that case the money will not be transferred or withdrawn with that cheque because there is a miss mess.

Read More: How To Write Account Payee Cheque?

Read More: How To Write A Cash Cheque?

3. Issued a check more than six months old

If you have received a cheque from any institution, on the date mentioned in the cheque you have to go to the bank branch with the cheque, withdraw the money, deposit it in the account, the matter is not like that. Transactions can be made through cheques at any time within six months from the date on the page of the cheque, but after six months, transactions cannot be done again.

4. Submit the check before the payment date.

If you deposit the cheque before the date written on the cheque. For example if the cheque is written on the 10-08-2022 and you deposit the cheque on the 09-08-2022, there will be no transaction.

5. The account holder’s signature does not match.

At the time of opening the account we give one signature, one signature is taken from us and if it is a company we give two signatures to the bank through which we can later withdraw money by cheque. If the cheque signature does not match that signature, or any of the two signatures in the case of a company

If the signature is not match then the cheque cannot be cashed or any transaction can be made.

6. Stopped the Payment by Check

If the account holder stops a cheque, calls the bank saying that my cheque is lost or I gave the cheque by mistake or for any issue or for any reason he stops the cheque and calls the bank, in that case the cheque cannot be cashed or any The transaction cannot be made.

7. Incorrect account numbers

If the name of the account does not match the account number given by you or if the account given cannot be found, the account name cannot be found, then this cheque will not be cleared.

8. Deposit the check in the wrong bank

For example, suppose someone gave you a cash cheque of XY Bank Limited, you went to withdraw money from XYZ Bank Limited with that cash cheque, in that case you cannot withdraw money with this cash cheque. You all know that one bank’s cash cheque cannot be withdrawn to another bank, but still I told you a little.

9. Closed Account

Someone gave you a cheque and you didn’t cash that cheque. You thought that since it is cashable within six months, I will cash it sometime. So for some reason this account was closed. It is not possible to withdraw money from that closed account.

10. Block Account

If the account is blocked for any reason, it is not possible to transfer money from the account.

11. Dormant account

A Dormant Account is an account that has no financial activity for a long period of time. This type of account can be activated by the bank, so it is not possible to transact with the cheques of the dormant account.

12. Incorrect Payee

For example, if the cheque is written as Abdur Rahman, but you have deposited the cheque in the name of Abdur Rahim, then the cheque cannot be deposited. Money should be deposited in the account of the name on the cheque.

13. Inactive Cheque

When you open an account from any bank, after opening the account if you say you will be given a cheque book, the bank give the cheque after 3 to 5 working days. First of all bank activates your cheque and gives it to you as soon as the cheque book is given. For some reason the bank did not activate this cheque. If you go to withdraw money with that cheque, you won’t be able to withdraw the money as it is inactive cheque. You can activate the cheque by calling the bank’s call center or contacting the branch from which you opened the account.

14. Tear cheque

If the cheque is torn, you cannot withdraw money from the torn cheque.

15. Court Order

If a cheque is stopped by the government court order for any reason, you will not be able to transact with the cheque or withdraw money from the cheque.

16. Frozen Account

The court or the government has instructed the bank to freeze any account in the name of a particular person, in that case the cheque will not be cashed, since the account is frozen.

17. Verification Fails

If a cheque of Rs 100,000 or more is submitted to the branch, the officer in charge calls the account holder and reconfirms the withdrawal. (In some cases, if he or she withdraws fifty thousand or ten thousand rupees, the bank officer may also call the account holder to confirm the fact of withdrawing money. If the bank officer has doubts about anything). If verification fails, your cheque will not be honored.

18. Overwriting The Cheque

Bank overwriting cheque is not acceptable like you wrote ten thousand rupees. The text that you wrote ten thousand taka is a bit blurry, it is not visible well, you thought that if I write ten thousand taka on top of this ten thousand taka again, it will be clear and it will be seen well. In that case it will fall under overwriting, that cheque will not be cashed or cleared. Overwriting cheque can be cashed if you follow cheque overwriting rules.

19. Alteration The Cheque

If you change or modify any part of the cheque, such as change the cheque number or change the account number or change some part of the default writing on the cheque, you will not be able to withdraw money from the cheque. There is no question of withdrawing money through alteration cheque.

20. Submit high-value checks at an appropriate branch

High value cheque deposited in a branch which is in local area, remote area, where usually there are not so many transactions. This type branches should not be high value cheque cash in many cases. So if your amount of money is too much then tell the branch in advance that we will withdraw so much money like 10 lakh or 20 lakh then they will make preparations in advance and your cheque can be cased.

21. Advice data mismatch

When you withdraw a large amount of money, you have to inform the bank in advance, suppose you inform the bank that a cheque of five lakh rupees will come to my cheque number 123456, you should cash it. After submitting the cheque to the bank, the bank saw that the cheque number did not match. In that case the cheque will not be cashed as there is a mismatch.

22. Transaction Limit Exceeded

At the time of account opening there is an option called Transaction Profile, In that transaction profile we set how much money we can transact in a day, how much money we can transact in a month, how much money we can transact in a year, how much money can be withdrawn at one time by a cheque etc.

Suppose your transaction profile states that a cheque can withdraw a maximum of Rs 1 lakh at a time, in that case if you go to withdraw Rs 1 lakh 1000 or Rs 1 lakh 10 thousand, the cheque cannot be withdrawn as your transaction limit has been exceeded.

There may be many more reasons if you know you can tell in the comment section through your comments other viewers will also know.


The consequences of a cheque being dishonored can be severe. If you are the payee, you may not receive the money you are owed. If you are the drawer, you may be charged a fee by your bank. In either case, it is important to ensure that you have enough money in your account to cover any cheques you write.



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