BANKING AFFAIRS

Detailed explanation-1: -How much is the cheque bounce penalty charge? Cheque bounce penalty charges vary from bank to bank ranging from Rs 50 to Rs 750.

Detailed explanation-2: -A bounced check penalty from a bank can cost around $35 in the form of a nonsufficient funds fee. Merchants can also charge a bounced check fee; they typically cost $20 to $40.

Detailed explanation-3: -When there are insufficient funds in an account, and a bank decides to bounce a check, it charges the account holder an NSF fee. If the bank accepts the check, but it makes the account negative, the bank charges an overdraft (OD) fee. If the account stays negative, the bank may charge an extended overdraft fee.

Detailed explanation-4: -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-5: -Banks charge merchants for depositing checks that bounce, so they need to recoup those costs-and will pass them along to you. The fees vary by merchant and by state, and they can impact your ability to write further checks at the same business.