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As per amendment in the Income Tax Rules, PAN or Aadhaar are to be mandatorily quoted for cash deposit or withdrawal aggregating to Rupees twenty lakhs or more in a FY. Please update your PAN or Aadhaar. Kindly reach out to the Bank’s contact center on 1800 10 888 or visit the nearest IDFC FIRST Bank branch for further queries.
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FinFIRST Blogs
When it comes to financial transactions, cheque bounces can pose significant hurdles. Not only do they interfere with the continuity of business transactions, but they could also possibly tarnish your financial reputation. So, what instigates a cheque bounce, and what are some ways in which you can ensure that this never happens? Go through the following article to find out the answers to these questions!
Understanding cheques and their significance
A cheque serves as a traditional, paper-based mechanism symbolising an instruction to a bank to relay a particular sum of money from one account to another. This form of transaction is considered secure because banks meticulously record every cheque transaction, thus ensuring traceability and accountability.
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What is a cheque bounce?
A bounced cheque, interchangeably called a 'returned cheque’, signifies a cheque that failed to get processed successfully. You might ponder over the question: what is a bounced cheque? To put it succinctly, if a cheque is tendered for encashment or deposit and the bank subsequently returns it unprocessed, it is categorised as a cheque bounce.
As a cheque bounce message from the bank is instantly sent to your registered mobile number, you get to know about it immediately. Note that the predominant factor causing this is the dearth of adequate funds in the cheque issuer’s account. Simply knowing the meaning of a bounced cheque is not enough, you also need to be aware of the reasons for a cheque bounce and the consequences attached to it in order to safeguard yourself from incurring any cheque bounce charges.
A cheque bounce is not a mere transactional hiccup, it carries potential legal ramifications. Any individual who knowingly issues a cheque that bounces can be slapped with monetary penalties and, under specific conditions, might be dragged into legal wrangling.
Why are the reasons for a cheques bounce?
Although the primary reason often is the lack of sufficient funds, multiple factors can cause a cheque to bounce, such as -
- An erroneously written date.
- Mismatch or anomaly in the signature.
- Disparity between the amount written in words and figures.
- Any noticeable physical damage to the cheque.
- Instances of overwriting or unapproved alterations.
Among other causes, if there are any inconsistencies in how the cheque is presented which do not align with established banking norms, which means an irregularly drawn cheque, can result in it getting bounced.
What are the cheque bounce charges?
When a cheque fails to process, the repercussions are not limited to mere inconvenience. Both parties, the issuer, and the recipient, may be slapped with a cheque bounce penalty.
To avoid such cheque return charges, it is imperative to ensure the account is well-funded. If in doubt about the balance, opting to post-date the cheque provides the issuer with ample time to ensure the necessary funds are in place.
At IDFC FIRST Bank, we understand that setbacks can happen to anyone. That’s why we have eliminated the burden of cheque bounce fees as part of our zero-fee banking promise*.
What is the alternative?
Why tread the risky path of potential cheque bounce scenarios when technologically advanced, secure, and user-friendly alternatives are at your disposal? Modern digital banking infrastructures, exemplified by platforms like IDFC FIRST Bank, offer uninterrupted online transfers. Such 24/7 platforms not only shield you from penalties but also endorse a sustainable, paper-free transactional system. Thus, for an experience devoid of hitches, making the leap to digital banking is the way forward.
While cheques continue to be pivotal in monetary dealings, a judicious approach and comprehensive understanding can safeguard you against the pitfalls of a bounced cheque. Be it an issuer or a recipient, knowledge is essential for secure financial undertakings.
These services are being offered free in good faith, and in case of abuse, the bank reserves the right to charge fees as per market norms. All rights reserved.
IDFC FIRST Bank offers Zero Fee Banking, subject to maintenance of required Average Monthly Balance (AMB) of the Savings Account. The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.
