BANKING AFFAIRS

Detailed explanation-1: -In that case, their respective banks charge for both the defaulter and the payee. The penalty charges for cheque outward return close to ₹300 for most banks, while cheque charges inward return about ₹ 100. The penalty charges vary from one bank to another and differ for different account types.

Detailed explanation-2: -When your check bounces, it’s rejected by the recipient’s bank because there aren’t enough funds in your account at the time of processing. The bounced check will be returned to you, and you’ll likely be subject to an overdraft fee or a nonsufficient funds fee.

Detailed explanation-3: -When you write a check and there’s not enough funds in your account when it’s presented, this is considered non-sufficient funds (NSF). When a check is returned due to NSF, it’s returned to the payee that deposited the check, at their bank.

Detailed explanation-4: -Your bank likely will charge you an NSF fee for bouncing a check. The average NSF fee, according to Bankrate’s 2022 checking account and ATM fee study, is $26.58. If the bank pays the check, even though you don’t have enough money in your account to cover it, it might charge you an overdraft fee.