Check Bounce

Online banking is the most opted mode of transaction nowadays. But some people still transfer money in the traditional way by using cheques. We are sure that every one of you reading this has once in a while given or received cheque. But have you ever wondered what will happen if the cheque bounces or how will you proceed and send a legal notice for cheque bounce.

What is a Cheque bounce?
Cheques are negotiable instruments, which are payable on demand. When there is unsuccessful processing of cheque due to insufficient funds, incorrect amount or mismatch of signature, the cheque bounces. Most of the cheques bounces in India are due to insufficient funds.

What happens if there is a Check Bounces?
When the cheque bounces, the payee has to file a legal notice within 30 days of return memo from bank. After this, if the drawer makes the payment, there is no need to file the case. If he doesn’t make the payment then case has to be filed within 30 days.

Format for Cheque Bounce Notice
Drafting a legal notice is no joke. While drafting the cheque bounce notice, one needs to be extra cautious. Since it is intimation about a future legal action, we need to frame the notice accordingly. Once a notice is sent, we cannot make changes and we cannot go against the statements given in the notice. Only a legal expert can draft a full proof cheque bounce notice.