6 Key Differences Between Dishonored Cheque And Bounced Cheque|| M And M Law Partners
Dishonored cheques involve various issues beyond insufficient funds, governed by the NI Act, with legal consequences including penalties and potential imprisonment. Bounced cheques specifically result from insufficient funds, leading to penalties, damaged credit scores, and reputational harm. The terms differ in legal precision, connotation, and usage in formal communication. Dishonored cheques cover a wider legal context, including Electronic Clearing Service mandates. Regulatory and banking circles prefer the term "dishonored cheque" for its comprehensiveness and legal weight.