Cheque Bounce

byPaytm Editorial TeamLast Updated: September 10, 2025

Meaning

Cheque Bounce occurs when a bank refuses to honor a cheque due to insufficient funds, signature mismatch, or other issues.

Importance

  • It is a legal issue under the Negotiable Instruments Act.
  • Leads to penalties for the account holder.
  • Alerts the receiver that the payment has failed.

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.

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