What is the reason for cheque return?

What is the reason for cheque return?

Reason For Return

CODE NO. REASON FOR RETURN
(01-03) Funds
33 Instrument mutilated; requires Bank’s guarantee
34 Cheque irregularly drawn/ amount in words and figures differs
35 Clearing House stamp/ date required

What are the various reasons under a clearing Cheques can be returned?

CHEQUE RETURN REASONS LIST IN BANKING

  • 1 List of Code No. and Cheque Return Reasons.
  • 2 (01-03) Funds.
  • 3 (04-09) Refer to Drawer.
  • 4 (10-14) Signature (mismatch)
  • 5 (15-19) Signature.
  • 6 (20-29) Stop Payment.
  • 7 (30-49) Instrument.
  • 8 (50-59) Account.

What is reason 5 for cheque return?

05 Kindly contact drawer/drawee bank and please present again. It can be easily understood from the reason because the reason is clear that you should contact the drawer of the cheque as a payee. And should clear the cheque return issue by discussing with the drawer of the cheque.

What is mean by out cheque return?

Outward cheque and Outward return: Cheque going out of the bank through the clearing process is Outward cheque for the bank. Outward return means that a person deposited a cheque received from a third person which bounced.

When a check is returned for the reason not arranged for the reason is?

IN SIMPLE WORDS WE CAN UNDERSTAND THE WORD EXCEEDS ARRANGEMENT MEANS LESS OR NO FUND IN CHEQUE DRAWER’S BANK ACCOUNT TO GET CLEARING. BUT IN THIS CASE CHEQUE DRAWERS BANK ACCOUNT ALSO HAVING FACILITIES OF OVERDRAFT OR CASH CREDIT BUT IT IS EXCEEDING THE LIMIT. SO CHEQUE IS DISHONOUR WITH A REASON EXCEEDS ARRANGEMENTS.

What are the charges for Cheque bounce?

If a cheque bounces due to insufficient funds or any other technical reason, such as signature mismatch, their respective banks charges for both the defaulter and the payee. The penalty charges for cheque outward return are close to Rs. 300 for most banks, while charges for cheque inward return are about Rs. 100.

What happens if a cheque is returned?

According to Section 138 of the Act, the dishonour of cheque is a criminal offence and is punishable by imprisonment up to two years or with monetary penalty or with both. If payee decides to proceed legally, then the drawer should be given a chance of repaying the cheque amount immediately.

Has been returned in clearing?

The clearing process begins with the deposit of a cheque in a bank. The cheques that are unpaid are returned to the presenting bank through another clearing called the Return Clearing. The realization of the funds occurs after the completion of return clearing and by the absence of an unpaid cheque.

What if my cheque is not cleared?

If cheques are lost in transit or in the clearing process or at the paying bank’s branch under physical instrument delivery clearing, the bank should immediately bring the same to the notice of the presenting customer (beneficiary)’s notice so that the customer can inform the drawer to record stop payment and can also …