What Is The Difference Between Dishonoured Cheque And Bounced Cheque?
The concept of cheque Dishonour and cheque bounce is almost the same, but the only difference is that cheque Dishonour occurred due to distinctive signature, wrong date etc. But the cheque bounce occurred only due to insufficient funds in drawer's account.
What happens if a cheque is dishonoured?
When a cheque is dishonoured, the drawee bank immediately issues a 'Cheque Return Memo' to the banker of the payee mentioning the reason for non-payment. ... The holder or payee can resubmit the cheque within three months of the date on it, if he believes it will be honoured the second time.
Cheque dishonoured: A step-by-step guide for legal recourse - IndiaInfoline
What is cheque bouncing?
When the payee presents a cheque to the bank for payment, and the cheque is returned unpaid by the bank with a memo of insufficient funds, then the cheque is said to have bounced. ... In such a case, the payee of the cheque can issue a cheque bounce notice to the drawer demanding to pay the cheque amount.
Consequences of Cheque Bounce Notice - ClearTax