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.