A cheque allows a person to ask their bank to deduct money from their account to give it to someone. There are many types of cheques such as order cheque, crossed cheque, bearer cheque etc.


This explainer discusses the concept of cheques, cheque bouncing and punishments for committing cheque related crimes. It primarily deals with the law laid out in the Negotiable Instruments Act, 1881.


How do I know the cheque collection policy of my bank?

Someone issued a cheque to me but the account was closed before I could encash it. Is this cheque bouncing?

What does Account Payee on the side corner of the cheque mean?

What does “or bearer” on a cheque mean?

Are there any other consequences to dishonor of cheque that I can face in terms of banking privileges with my respective bank?

Is it possible that the bank can misplace my cheque after I have presented it to them for encashment?

Will I receive an acknowledgement for cheque deposited in a bank for collection?

I issued a cheque to my landlord at the beginning of the month for rent and when he en-cashed the cheque there was no money in my bank account. Can I be held liable?

I lost my cheque return memo. What do I do?

If I have filed a cheque bouncing case against someone, can I ask the Court for some interim compensation?

What is the format in which I should send a notice to the issuer/drawer of the cheque?