Cheque Return Penalties: What You're Charged and Why

A returned cheque can trigger two separate charges at once, your bank's own return fee and your lender's bounce charge, and there's no single standard amount across banks or lenders, so the real figure always depends on your specific account and loan agreement.
 

• You can be charged twice for the same bounce. The bank's return charge and the lender's bounce charge are separate fees under separate terms, don't assume paying one covers the other.
• A cheque return doesn't automatically mean legal trouble. Section 138 only applies if the cheque was for a genuine debt and the statutory notice and payment timelines aren't met, most bounces are resolved through payment, not court.
• A waiver is possible but never guaranteed. You can request a review of a bounce charge through official channels, but approval depends entirely on the circumstances and the lender's assessment, don't count on it before you ask.
• The EMI itself stays unpaid until you use an alternative method. Clearing the charge doesn't resolve the underlying instalment, you still need to make the payment through an accepted channel separately.
   

If your cheque bounces on a loan EMI, check the return memo for the exact reason, confirm your total outstanding amount including any charges, and pay through an alternative method like UPI or net banking promptly, waiting for a replacement cheque only adds another point of failure.

When a cheque is returned unpaid, the borrower may have to pay cheque return charges imposed by the bank or lender, depending on the reason for the return and the applicable terms. Common reasons for cheque return include insufficient funds, an incorrect account number, a signature mismatch, a closed or blocked account, or other technical issues. The applicable penalty or return charge varies between financial institutions and depends on the terms of the relevant account or loan agreement. In some cases, repeated cheque returns may also result in additional charges or affect the repayment record.

Is there a bank charge in addition to the lender's bounce charge?

A bank may apply a cheque return charge when a cheque is dishonoured, while a lender may separately apply a bounce charge under the applicable loan terms. These are separate charges, so both may apply when a cheque issued for loan repayment is returned unpaid. The bank's charge depends on its applicable schedule of charges, while the lender's bounce charge depends on the relevant loan agreement and fee structure.

If the returned cheque relates to an EMI, the unpaid amount may also remain outstanding until an accepted alternative payment is made. Reviewing the bank statement, lender communication, and applicable fee schedules can help you identify each charge separately and avoid confusion about the total amount due.

How to minimise cheque return penalties by acting quickly

Acting promptly after a cheque is returned can help you address the unpaid amount and avoid additional payment-related issues.

• Identify the reason: Check the bank or lender communication to understand why the cheque was returned
• Arrange sufficient funds: If the return resulted from insufficient funds, ensure the account has an adequate balance before making another payment
• Use an alternative payment method: Where available, make the pending payment through another accepted payment channel
• Check outstanding dues: Confirm the unpaid amount and any applicable cheque return charges before paying
• Keep payment records: Save the transaction receipt, payment confirmation, and cheque return communication
• Avoid repeated returns: Check account details, signature requirements, and other cheque details carefully before issuing another cheque
• Contact the lender: If you are unsure about the amount payable or available payment options, contact the lender through its official service channel

Addressing a returned cheque quickly can help bring the repayment up to date and reduce the risk of further issues.

Bajaj Finance applies bounce charges for dishonour of a payment instrument, including a returned cheque, but the applicable amount varies by loan product and the terms of the loan agreement. The current Bajaj Finance fee schedule lists different bounce charges for different products, so check the applicable charge for your specific loan account before making a payment, through the fees and charges schedule, your loan agreement, or your account details.

A returned cheque may also leave the related EMI unpaid, so check the outstanding amount and promptly arrange an accepted alternative payment method. The penalty fee for a cheque return on an EMI depends on your specific agreement's terms and conditions.

Can you get cheque return charges waived?

A waiver of cheque return charges is not guaranteed, but you can request a review if you believe your circumstances justify it.

1. Raise a service request through the available Bajaj Finance support channel
2. Explain the circumstances behind the cheque return
3. Provide supporting documents where required
4. Wait for the outcome, which depends on the applicable terms and Bajaj Finance's assessment of your specific case

Do not assume a waiver will be granted, or delay clearing the underlying overdue amount while your request is under review.

What happens to your loan repayment after a cheque return?

A returned cheque used for loan repayment leaves the related EMI or amount unpaid until you make an alternative payment. This can lead to:

• Additional charges if the amount remains outstanding, depending on your loan terms
• A missed or overdue status on your loan account
• A potential impact on your credit history, if the missed payment is reported to credit information companies
• Further consequences if the cheque was issued towards a legally enforceable debt, since this may separately attract legal implications under Section 138 of the Negotiable Instruments Act

How to pay overdue after a cheque return

1. Sign in to Bajaj Finance My Account using your registered mobile number and OTP
2. Select the relevant loan under My Relations
3. Choose Make Payments
4. Select Missed EMIs or Other Overdues
5. Complete the payment through an available method
6. Retain the payment confirmation for your records

If a replacement payment also fails, check the reason for the failed transaction and contact the lender through its official service channel before attempting another payment.