Search

Banking Term: Bouncing of Cheque

Find important banking term that is useful in upcoming banking exam.

Apr 28, 2015 15:08 IST
facebook IconTwitter IconWhatsapp Icon

Banking Term: Bouncing of Cheque

  • Bouncing of Cheque means where an account does not have sufficient balance to honour the cheque issued by the customer
  • The cheque is returned by the bank with the reason "funds insufficient" or "Exceeds arrangement”.
  • Bouncing of Cheque is written inadvertently by people who simply were unaware that their bank balances were too low.
  • It is always a good idea to have a small overdraft line of credit to cover such situations, or keep a close eye on your balance near bill-paying time.

Related Categories

Related Stories