What is connectivity failure in cheque return

Connectivity failure in a cheque return refers to a technical situation where a cheque is dishonoured because of a breakdown in electronic communication between banks. This typically happens due to network outages, server downtime, or hardware malfunctions that prevent the cheque from being processed or verified during electronic clearing. Key points include:

• It is a non-financial reason for return and is often denoted by return code 84.
• Unlike a bounce due to insufficient funds, it does not attract legal penalties under Section 138 of the Negotiable Instruments Act.
• The cheque should be resubmitted for clearance once the technical issue is resolved.