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What are the reasons for cheques being returned unpaid?

Your bank will decline to pay a cheque issued by you due to the following reasons:
  • Insufficient funds in your account to clear the cheque

  • Missing signature(s)

  • Signature(s) differ from specimen signature(s) in the bank's record

  • Post-dated

  • Stale cheque (cheque which is dated more than 6 months ago)

  • Amount in words and figures differ

  • Alteration on the cheque (Note: Any alteration is not permitted)

  • Stop payment instruction has been issued

  • Account closed or "legally blocked" account


Cheques which have been dishonoured will be returned to the accountholder.

The issuer of the cheque will be charged a fee by his bank to recover part of the administrative cost incurred.

Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)


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Knowledge Base ID :   1373
Last Reviewed :   April 30, 2014
Source :   BankingInfo
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