In which circumstances a cheque can be dishonoured?
Answers
If the cheque is overwritten. Know ‘How to write a Cheque?’
If the signature is absent or the signature in the cheque does not match with the specimen signature kept by the bank.
If the name of the payee is absent or not clearly written.
If the amount written in words and figures does not match with each other.
If the account number is not mentioned clearly or is altogether absent.
If the drawer orders the bank to stop payment on the cheque.
If the court of law has given an order to the bank to stop payment on the cheque.
If the drawer has closed the account before presenting the cheque.
If the fund in the bank account is insufficient to meet the payment of the cheque.
If the bank receives the information regarding the death or lunacy or insolvency of the drawer.
If any alteration made on the cheque is not proved by the drawer by giving his/her signature.
If the date is not mentioned or written incorrectly or the date mentioned is of three months before