Remedies Against Cheque Bounce Resubmission of cheque Mismatch of amounts or digits – If the cheque amount mentioned in words and figures does not match, the cheque will bounce.Signature mismatch – If the drawer’s signature is unclear or absent or does not match the one in the bank’s data, the cheque will bounce.Damaged cheque – If a cheque is damaged or disfigured and the details are not visible or have marks or stains, the cheque will bounce.Overwriting – If the signature of the drawer or cheque amount or any other statement has been overwritten on the cheque, the cheque bounces for overwriting.If the expired cheque is given to the bank, it bounces. The cheque expires if it is not presented to the bank within three months. Expired validity of cheque – Once the drawer issues the cheque, it must be presented for payment within three months.Insufficient account balance – If there is not enough balance in the drawer’s account to make the payment of the cheque, the bank will reject and return the cheque to the payee with a memo stating insufficient funds to pay the cheque amount.The various situations that result in cheque bounce are as follows: Since the new rule ensures that NACH will be operational on all days of the week, Sundays will also be a day on which the entity can process and clear a cheque. The rule change was brought in to make clearing the cheques a faster and generally smoother one.
These changes apply to all national and private banks. Along with these changes, the RBI announced that the National Automated Clearing House (NACH) would be operational 24 hours a day. In addition to this, the customer who issued the cheque may also have to pay a penalty fee. If this minimum balance is not maintained, the cheque will bounce. According to a notice issued by the Reserve Bank of India (RBI) in early August of 2021, customers whose financial activities revolve heavily around cheques or those who even plan to use cheques will have to ensure a minimum bank balance.
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