Cheque Bounce
Also called: dishonoured cheque, cheque dishonour
What is Cheque Bounce?
A cheque bounce is a cheque returned unpaid by the bank, most often for insufficient funds or a signature mismatch. It carries bank charges for both parties and specific legal consequences in India.
Why Cheque Bounce matters
A bounced cheque is both a cash flow event and a warning sign. Customers whose cheques bounce once frequently do so again, and the paperwork window for legal remedy is short.
How Cheque Bounce works in practice
Record the bounce and its charges against the customer, restore the outstanding invoice, and follow the statutory notice timeline if you intend to pursue it. Repeat offenders should move to advance payment.
Frequently asked questions
Dishonour for insufficient funds is an offence under the Negotiable Instruments Act, subject to a strict notice and filing timeline.