A cheque bounce can be an inconvenient and frustrating experience for both the payer and the payee. It occurs when a cheque cannot be processed by the bank due to various reasons. Grasping why cheques bounce is key, it saves you from the hassle and keeps your finances smooth. Diving into the Top 7 Cheque Bounce Reasons List, Understanding the Causes Behind Bounced Cheques.

Cheque Bounce Reason List :

Cheque Bounce Reason List | 7 Cheque Bounce Reasons | Cheque Bounce Reason

1. Insufficient Funds :

Among the primary cheque bounce reasons are insufficient funds in the payer’s account. When the amount mentioned on the cheque exceeds the available balance, the cheque bounces. Before you write that cheque, double-check your account to make sure you’ve got enough cash to cover it. Nobody wants the bother of a cheque overwriting.

Cheque Bounce Reason |  Cheque Bounce Reasons |Did You Know ?

2. Signature Mismatch :

Instances of signature mismatch are also one of the cheque bounce reasons, cheque bounce can occur due to:

  • Signatures that have evolved or changed over time.
  • Discrepancies between the signature on the cheque and the bank’s records.
  • Signatures that differ significantly from the usual or registered ones.
  • Errors were made during the cheque-writing process.
  • Variations in the style or clarity of the signature.

3. Overwriting or Alteration :

Any form of alteration, overwriting, or tampering on a cheque raises suspicion and can result in its rejection by the bank; it is one of the cheque bounce reasons. Even minor changes, such as altering the payee’s name or the cheque amount, can lead to a cheque bounce. Sticking to the right way of writing a cheque is key to dodge those pesky bounce-backs.

4. Post-Dated Cheques:

Postdating a cheque involves mentioning a future date as the payment date. However, if the recipient attempts to deposit the cheque before the specified date, it will bounce. This practice can confuse and result in a cheque bounce reasons due to premature presentation.

5. Frozen or Blocked Account:

When the payer’s account is frozen or blocked due to various cheque bounce reason like legal issues, bankruptcy, or disputes, any cheque issued from such an account is likely to bounce. Keep a close eye on your account to make sure you don’t accidentally write cheques when it’s locked up.
cheque bounce reason

6. Account Closed :

Closure of the payer’s account before the presentation of the cheque leads to an automatic bounce. This scenario often occurs when the account holder forgets to notify the payee or issues a cheque before closing the account, resulting in a cheque bounce reason that could have been easily avoided.

The occurrence of a bounced cheque due to a closed account can be attributed to:
  • Closure of the account by the account holder before the cheque presentation.
  • Failure of the payer to inform the payee about the account closure.
  • Issuing a cheque from an account without realizing it has been closed.
  • Cheques are being presented after the closure of the payer’s account.
  • The account is closed due to various reasons such as bankruptcy, disputes, or inactivity.

7. Technical Errors:

Technical Error in Cheque Bounce | Cheque Bounce Reason List

Technical errors in cheque writing can lead to cheque bounce reason. Some of these errors include:

  • Missing or incorrect date on the cheque.
  • Incomplete or incorrect payee details.
  • Writing an expired cheque.
  • Insufficient funds due to the wrong amount mentioned.
  • Non-matching signatures or missing signatures.
  • Errors in the amount mentioned in words and figures.
  • Damaged or torn cheques affecting readability

For further information regarding the process of filing a Cheque Bounce Case, please get in touch with M&M Law Partners. At M&M Law Partners, we have the best civil lawyers in Delhi who are experts in navigating The reasons for cheque bounce and How to File a Cheque Bounce Case, they’ve got your back every step of the way.

Reaching out to M&M Law Partners could be a game-changer if you’re tangled up in the messy world of Cheque Bounce cases—they’ve got the know-how to guide you through every legal round.


1. What are the RBI Guidelines for Bounced Cheques?

The Reserve Bank of India (RBI) has laid down guidelines to address bounced cheques. According to these guidelines, banks are required to levy charges for bounced cheques and inform customers about the same. The penalties or charges imposed should be reasonable and disclosed to the account holders.

2. What Happens if Cheque Bounces 3 Times?

Multiple bounce instances can result in the bank restricting the account holder from issuing further cheques for a specific period as per the bank’s policies.

3. Who Is Responsible for Cheque Bounce?

The responsibility primarily lies with the issuer of the cheque, ensuring sufficient funds and accurate details to prevent bounce scenarios.

4. Can a Cheque Bounce Due to a Spelling Error?

Yes, even a minor discrepancy like a spelling error can lead to a cheque bounce if it affects clarity and authenticity.

5. Can the Cheque Bounce Due to a Signature Mismatch?

Yes, a signature mismatch, differing significantly from the bank’s records, can lead to the cheque being bounced by the bank

6. Why Does a Cheque Bounce?

However, there are various reasons why a cheque may bounce, including an inaccurate date on the cheque, a signature mismatch, a mismatch of the amount and figures, a damaged cheque, overwriting of the cheque, and so on. Insufficient funds are the most common cause of cheque bounces.

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