The list of reasons, for which a cheque could be returned unpaid by a bank, is given below (this list is only illustrative and not exhaustive):
REASON FOR RETURN OF CHEQUES:
Code No. | Reason for Return | |
(01-03) | Funds | |
01 | Funds insufficient | |
02 | Exceeds arrangement | |
03 | Effects not cleared, present again. | |
(04-09) | Reference to Drawer | |
04 | Refer to drawer | |
05 | Kindly contact Drawer/Drawee Bank and please present again. | |
(10-19) | Signature | |
10 | Drawer’s signature incomplete | |
11 | Drawer’s signature illegible | |
12 | Drawer’s signature differs | |
13 | Drawer’s signature required | |
14 | Drawer’s signature not as per mandate | |
15 | Drawer’s signature to operate account not received | |
16 | Drawer’s authority to operate account not received | |
17 | Alteration requires drawer’s authentication | |
(20-29) | Stop Payment | |
20 | Payment stopped by drawer | |
21 | Payment stopped by attachment order | |
22 | Payment stopped by court order | |
23 | Withdrawal stopped owing to death of account holder | |
24 | Withdrawal stopped owing to lunacy of account holder | |
25 | Withdrawal stopped owing to insolvency of account holder | |
(30-49) | Instrument | |
30 | Instrument post dated | |
31 | Instrument out dated/stale | |
32 | Instrument undated/ without proper date | |
33 | Instrument mutilated; requires Bank’s guarantee | |
34 | Cheque irregularly drawn/ amount in words and figures differs | |
35 | Clearing House stamp/ date required | |
36 | Wrongly delivered/ Not drawn on us | |
37 | Present in proper zone | |
38 | Instrument contains extraneous matter | |
39 | Image not clear, present again with paper | |
40 | Present with document | |
41 | Item listed twice | |
42 | Paper not received | |
(50-59) | Account | |
50 | Account closed | |
51 | Account transferred to another branch | |
52 | No such account | |
53 | Title of account required | |
54 | Title of account wrong/ incomplete | |
55 | Account blocked (situation covered in 21-25) | |
(60-69) | Crossing/Endorsement | |
60 | Crossed to two banks | |
61 | Crossing stamp not cancelled | |
62 | Clearing stamp not cancelled | |
63 | Instrument specially crossed to another bank | |
64 | Amount in protective crossing incorrect | |
65 | Amount in protective crossing required/illegible | |
66 | Payee’s endorsement required | |
67 | Payee’s endorsement irregular / requires collecting bank’s confirmation | |
68 | Endorsement by mark/ thumb impression requires attestation by Magistrate with seal | |
(70-79) | RBI /Government | |
70 | Advice not received | |
71 | Amount / Name differs on advice | |
72 | Drawee bank’s fund with sponsor bank insufficient | |
73 | Payee’s separate discharge to bank required | |
74 | Not payable till 1st proximo | |
75 | Pay order/ cheque requires counter signature | |
76 | Required information not legible/ correct | |
(80-99) | Miscellaneous | |
80 | Bank’s certificate ambiguous/ incomplete/ required | |
81 | Draft lost by issuing office/ confirmation required from issuing office | |
82 | Draft lost by issuing office/ confirmation required from issuing office | |
83 | Digital Certificate Validation failure | |
84 | Other reasons-connectivity failure | |
85 | Alterations on instrument- Other than “Date” field (Alteration/correction on instruments are prohibited under Cheque Truncation System. Return reason code applicable to instruments presented in CTS) | |
86 | Fake/Forged/Stolen-draft/cheque/cash order/interest warrant/dividend warrant | |
87 | ‘Payee’s a/c credited’- Stamp required | |
88 | Other reasons (Please specify) | |
92 | Bank Excluded | |