Ephy
Active member
A cheque is a mode of payment where notes or coins are not involved the customer just writes an order to the bank to pay the named person certain money mentioned in the cheque. A bank may refuse to pay money written on a cheque because of the following reasons:
1. If the cheque is presented to the bank before the maturity date.
2. If the account holder has insufficient funds in his or her account.
3. If the amount written in words differs from the amount written in figures.
4. If the cheque is torn apart or dirty it can make it illegible.
5. If the account holder or the drawer stops the payment by asking the bank not to pay or cash the cheque.
6. If the account is inactive or if the drawer has closed the account from which payment was to be made.
7. If the signature of the account holder differs with the specimen signature in the bank.
8. If the account is or was declared bankrupt.
9. If the account holder is declared insane.
The above are just some of the reasons as to why a cheque might be dishonoured by the bank they're are many more other reasons but to my perspective think these are the most important things that can make a cheque to be dishonoured.
1. If the cheque is presented to the bank before the maturity date.
2. If the account holder has insufficient funds in his or her account.
3. If the amount written in words differs from the amount written in figures.
4. If the cheque is torn apart or dirty it can make it illegible.
5. If the account holder or the drawer stops the payment by asking the bank not to pay or cash the cheque.
6. If the account is inactive or if the drawer has closed the account from which payment was to be made.
7. If the signature of the account holder differs with the specimen signature in the bank.
8. If the account is or was declared bankrupt.
9. If the account holder is declared insane.
The above are just some of the reasons as to why a cheque might be dishonoured by the bank they're are many more other reasons but to my perspective think these are the most important things that can make a cheque to be dishonoured.
