Bounced (dishonoured) cheque

A bounced cheque arises when a cheque presented to the bank within the statutory period cannot be paid because the account lacks sufficient funds. The bank records the dishonour on the cheque and pays the holder a limited statutory amount per cheque leaf for which it is responsible.

The holder of a dishonoured cheque may start the special enforcement procedure against the drawer. Upon complaint, the drawer may additionally face a judicial fine and a ban on drawing cheques and opening cheque accounts. This sanction regime has changed repeatedly over the years.

The complaint must be filed within the statutory period. Bans can be lifted if payment is made, and because enforcement practice evolves, the current sanctions should be verified case by case.