BANKING AFFAIRS

Detailed explanation-1: -When a cheque bounces the first time, the bank issues a ‘cheque return memo’, stating the reasons for non-payment. The holder can resubmit the cheque to the bank within three months of the date on it, if he believes it will be honoured the second time. The other option would be to prosecute the defaulter legally.

Detailed explanation-2: -The bank will bounce or return these checks instead of depositing the money in your business bank account. The bank may charge the payer a bounced check fee. And, the bank might also charge your business for depositing a bad check. Bounced checks are also called non-sufficient funds checks (NSF checks).

Detailed explanation-3: -The bank declines to honor the check and “bounces” it back to the account holder, who is typically charged a penalty fee for nonsufficient funds (NSF). A bounced check is sometimes called a “rubber check.” There are other factors that cause checks to bounce, but lack of funds is the most common one.

Detailed explanation-4: -The cheque was deposited in (Branch) but due to (Insufficient amount/ signature differ/cheque stale/date error/payee name differ/ any other difference – Mention reason) cheque got bounced. I request you to kindly provide me with the returned cheque at the earliest. I shall be thankful.

Detailed explanation-5: -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.