BANKING AFFAIRS

Detailed explanation-1: -Cheque Bounce Notice under Section 138 of the Negotiable Instruments Act. A cheque bounce notice is issued under Section 138 of the Negotiable Instruments Act when a cheque bounces due to insufficient funds in the drawers’ account to make the cheque amount payment.

Detailed explanation-2: -Definition of Stale Cheque In finer terms, a stale cheque is one that is presented for payment by the payee, at the drawee bank for encashment, but not accepted by the bank, because it is presented after the reasonable period, i.e. three months (earlier it was six months) of its date of payment.

Detailed explanation-3: -It can only be cashed after the date specified by the payer. The post-dated cheque can be valid after the mentioned date but not before it. Hence, even if it is presented to the bank, the bank will not process it until the mentioned date.

Detailed explanation-4: -Cheques that are issued by business but not yet presented to bank are known as Unpresented Cheques.