PIf the banks refused to pay the amount to the payee on the issued cheque then it said to be dishonoured.
Whenever a cheque is dishonoured the drawee bank instantly issue a “Cheque Return Memo” to the payee with specifying the reason of dishonoured.
There are several reasons to dishonour a cheque; it may be no balance, over writing, false signature, out dated cheque, etc.
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