Tuesday, 9 September 2025

Cheque Return Memo reasons mentioned



 Subject: Request for Mandatory Dual Reason Disclosure in

Cheque Dishonour Cases

To

The Secretary,

Ministry of Law & Justice, Government of India

&

The Governor,

Reserve Bank of India

From

Vinay Dadmal

55 First Floor, Swarajnagar,

Behind Onkarnagar, Manewada Ring Road,

Nagpur – 440027

Email: dadmalv2015@gmail.com


Respected Sir/Madam,

I am writing to bring to your kind attention a critical issue regarding the handling of

cheque dishonour cases by banks in India.

Currently, when a cheque is dishonoured, banks mention only the primary

reason (e.g., "signature mismatch") and do not disclose if insufficient funds was

also a contributing factor. This practice can lead to legal ambiguity, especially in

cases where the drawer may have acted with dishonest intent, and where Section

138 of the Negotiable Instruments Act could otherwise be invoked.

�� My humble request:

I urge the Ministry and the RBI to issue clear guidelines to all banks, requiring them

to:

1. Check for insufficient funds in every cheque dishonour case, regardless of

other reasons.

2. Mention all applicable reasons for dishonour in the return memo, including


both technical and financial grounds.

This will help:

 Ensure transparency in banking operations.

 Empower payees with accurate legal grounds for action.

 Strengthen the enforcement of Section 138 of the NI Act, which is vital for

maintaining trust in financial transactions.

I hope you will consider this suggestion in the interest of justice and financial

accountability.

Thank you for your attention.


Sincerely,

Vinay Dadmal

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Cheque Return Memo reasons mentioned

  Subject: Request for Mandatory Dual Reason Disclosure in Cheque Dishonour Cases To The Secretary, Ministry of Law & Justice, Gover...