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
- 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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