Cheque bounce

The most common reason is not enough money in the account. Others include a signature that does not match, different amounts in words and figures, a cheque older than three months, overwriting or damage, and positive pay details that do not match.

It can be. Under Section 138 of the Negotiable Instruments Act, a cheque given to repay a debt that bounces for lack of funds is an offence if the writer does not pay within 15 days of a written demand, which must be sent within 30 days of learning of the bounce. The law allows up to two years in jail, a fine up to twice the amount, or both. For a real case, talk to a lawyer.

Banks charge a fee when a cheque you wrote bounces, and often a smaller fee when a cheque you deposited is returned. The amount differs by bank, so check your bank's fee schedule.