Top Reasons Why Cheques Get Bounced – A Complete Guide in 2025
Cheque bounce can disrupt financial transactions and even lead to legal consequences in India. This article explores over 20 common reasons for cheque returns — from insufficient funds and account closure to signature mismatches and technical errors — along with practical tips to ensure your cheques are processed smoothly.
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20+ Common Reasons for Cheque Bounce in India and How to Avoid Them
Cheque bounce is a common issue in India that can lead to financial loss, penalties, and even legal trouble. This guide explains over 20 common reasons why banks return cheques unpaid — from insufficient funds and signature mismatches to account closures and encoding errors — along with practical tips to prevent them.
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Cheque Bounce in India: Causes, Legal Action, and What to Do Next in 2025
Excerpt:
Cheque bounce is a common issue in India that can lead to serious legal trouble if not handled properly. This blog explains what cheque bounce means, why it happens, the legal actions involved under Section 138 of the Negotiable Instruments Act, and what steps you should take next. Plus, find answers to 20 frequently asked questions in simple terms.
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