Describe three reasons of disorder of a cheque?
Friday, October 04, 2024
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Question: Describe three reasons of disorder of a cheque?
Sure! Here are three common reasons why a cheque might be dishonoured:
1. Insufficient Funds: If the account from which the cheque is drawn does not have enough balance to cover the amount specified, the bank will reject the cheque.
2. Signature Mismatch: If the signature on the cheque does not match the signature on record with the bank, the cheque will be dishonoured.
3. Post-Dated Cheque: Presenting a cheque before the date written on it can lead to its dishonour. The bank will not process a cheque that is dated for a future date.
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