7 reasons why your cheque bounces

New Delhi : When it is about writing a cheque for banking transactions on SBI, HDFC, Axis Bank etc, it is necessary to be very attentive. Many times, we take things very casually and ignore some important facts which make the bank to refuse the cheque and charge nominal penalty to the issuer. Also, a bounced cheque invites legal action against the person involved. Therefore, it becomes important for us to know the reasons why a cheque can bounce.

• If there is less balance in the bank account than the amount written on the cheque, then the cheque will get bounced.
• If the account has been frozen for some reason, the cheque will not be accepted.
• If the written cheque crosses 3 month on which the date is forwarded, then the bank will reject the request.
• If the person who wrote the cheque has signed upside down and there is no match with the Specimen signature in the bank, the cheque will bounce.
• Any kind of scribbling, overwriting, correction etc on a cheque will not be entertained by the bank
• If the cheque have any difference in the amount payable mentioned in words and in numbers, then banks will bounce your cheque.
• If the cheque is damaged, torn, not in a good condition or not clearly visible; these types of cheques will bounce.