What does invalid cheque mean?

1) Insufficient funds: The cheque amount is more than the free balance available in the drawer’s bank account. 2) Irregular signature: The signature of the drawer on the cheque does not match the specimen signature available with the bank. The drawer signs near it to verify any other alteration.

What is meant by cheque not cleared?

Meaning of effects not cleared in English that have been put into an account by a customer but not yet cleared (= successfully paid) by the bank: Different banks have different ‘effects not cleared’ periods for cheques paid into personal accounts.

What can make a cheque invalid?

9 Reasons Why Your Cheque Bounced Or Dishonoured

• Insufficient Funds.
• Irregular Signature.
• Date of Cheque.
• Post-Dated Cheque.
• The difference in the amount in words and numbers.
• Damaged Cheque.
• Scribbling and overwriting on Cheque.
• Frozen Account.

Why was my cheque rejected?

Although, there are several cheque bounce reasons to be considered such as incorrect date mentioned on the cheque, signature mismatch, mismatch of the amount and figures, damaged cheque, overwriting of the cheque, etc. The principal reason for a cheque bounce is insufficient funds.

How many days does it take to clear a cheque?

For all practical purpose, the cheque clearing between scheduled commercial banks now happens within three working days,” said an official of Indian Bank on anonymity as he is not authorised to talk to media. In the CTS, the image of the cheque is captured at the presenting bank level.

Why did a cheque not clear?

The payee name or amount on the image of the cheque is not clear which means that the payment cannot be made to you. You’ll need to contact the person who gave you the cheque to either get a replacement cheque or ask for a different type of payment.