Bank return memos and the dishonour reason

At a glance

Preserve the complete return memo and bank record. A verbal explanation or a cropped banking message may not show the actual return reason and date.

Law and context

Section 138 addresses specified dishonour circumstances, while section 146 concerns bank-slip evidence in its framework. The stated reason, underlying facts and current judicial interpretation must be assessed rather than assuming every return has the same consequence.

Practical next step

Keep the cheque, deposit or presentation record, memo and bank-information communication. Seek clarification from the bank through its official process if the record is incomplete or inconsistent.

Important qualifications

This guide does not say every return reason establishes or excludes an offence. Do not alter a memo or replace missing facts with an assumption.

Document checklist

• Cheque
• Presentation evidence
• Complete return memo
• Bank communication

Sources

• The Negotiable Instruments Act, 1881 — 138,146

General information. The appropriate course depends on the complete facts, documents and applicable law. Editorial process and website disclaimer.