Bounce Cheque & its consequence!

Cheque is an Invoice that orders a payment of money from a specified bank account to the person whose name is mentioned on it. It is convenient and safe payment process that lessens the risk of money loss. There are several situations when a cheque gets bounced. Before discussing details about the topic let us know what is cheque bounce? It is term used when a cheque is rejected by a bank and is returned to the person who wrote it due to one or some reasons.

Major reasons for Bounce Cheques!

We are aware with the fact that there are various reasons for bounced cheque. The professional research and deep insight has explored various reasons for bounce cheque. Here, we are mainly going to focus on the following five deep causes that often give rise to a cancelled cheque or bounced cheque:

1. The cheques payee/holder is entitled for the bounced cheque or cancelled cheque amount but the cheque bouncer, despite being financially capable, does not intend to pay the cheque amount and dishonestly brings about the bouncing of the cheque.
2. 
   
3. The cheque payee/holder is entitled for the bounce cheques amount but the cheque bouncer, although intends to pay the bounce cheque amount, but is financially incapable of paying.


4. The bearer cheque payee/holder is not entitled for the cheque amount and, taking undue advantage of the possession of the cheque, dishonestly presents the cheque for encashment in order to harass the cheque bouncer or to settle unconnected scores through the bounced cheque.


5. The cheque payee/holder is only entitled to a part of the cheque amount but presents the cheque for encashment and the cheque bouncer, being in constant anticipation of the encashment of the cheque, has made prior arrangements with his bank to ensure the bouncing of the cheque leading to cheque dishonour case or a cheque bouncing case


6. Genuine and unintentional communication gap or misunderstanding between the cheque bouncer and the cheque payee/holder giving rise to cheque bounce cases

Be careful about bounced cheque!

In most of the cases a cheque bounces when there is insufficient balance in the account holder who issues a cheque to a third party. In this case the bank either honours the cheque or pays the sum to the payee issuing an extra amount to the account holder. Further, the bank also has option to inform the respective bank about the insufficient funds where the bounced cheque are not cleared. There is a percentage deduction from both the payee and person issuing the cheque.

Now a days, the laws are quite strict, so one must be aware about the terms and policy that safeguard their interest. It is not possible to remember all these policies, so one can hire professional and highly experienced lawyers.