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)

Back to the top

Share this page

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

Related Knowledge Base Issues