How to Request a Waiver of Check Bounce Charges

A cheque bounce charge waiver can be requested after a cheque is dishonoured and an applicable charge is imposed or may apply. The request should explain the payment failure and seek a review from the concerned bank or lender.

• A waiver request should clearly identify the returned cheque, applicable charge and circumstances of the failed payment.
• Include relevant account, cheque, return and payment details along with supporting documents, where available.
• A waiver request is subject to the applicable terms and the concerned bank or lender’s assessment.
• If an EMI or other amount remains unpaid, it should be cleared separately through an authorised payment channel.
• Use a factual waiver letter and retain payment, return and account records for future reference.

Cheque bounce and EMI bounce charges are applicable charges that may arise when a scheduled payment is not successfully processed. A cheque bounce occurs when a cheque issued for repayment is returned unpaid by the bank. An EMI bounce occurs when a scheduled EMI cannot be collected through the selected repayment method. The applicable charge depends on the loan or account terms and the circumstances of the failed payment. A cheque or EMI bounce does not remove the underlying repayment obligation. Any unpaid EMI or other outstanding amount should therefore be cleared separately through an authorised payment channel. Borrowers should check their loan documents or account statement for the applicable charges and repayment terms. Specific charge amounts should not be assumed unless they are confirmed in the applicable loan or account documents.

When can you request a waiver of cheque bounce charges?

You can request a waiver when a cheque has been dishonoured and a cheque bounce charge has been applied or may apply. The request should explain the circumstances of the failed payment and ask the concerned bank or lender to review the applicable charge.

• Cheque dishonour: Request a review after the cheque has been returned unpaid.
• Reason for bounce: Explain the circumstances that resulted in the failed payment.
• Charge review: Clearly state that you want the applicable cheque bounce charge to be considered for waiver.
• Supporting information: Provide relevant payment or return details that can help explain the situation.
• Lender assessment: The waiver request is subject to the applicable terms and the concerned institution’s assessment.

A waiver is not guaranteed. The concerned bank or lender decides whether the applicable charge can be waived based on its assessment and applicable terms.

What should a cheque bounce charge waiver letter contain?

A cheque bounce charge waiver letter should identify the payment, explain the circumstances of the cheque return and clearly request a review of the applicable charge.

Include these details:

1. Your name and contact details.
2. Bank account or loan account details, as applicable.
3. Cheque number and date, where relevant.
4. Date on which the cheque was presented or returned.
5. The stated reason for cheque return, if available.
6. Details of the applicable cheque bounce charge.
7. A brief explanation of the circumstances.
8. Details of the action taken to resolve the failed payment.
9. A specific request for review or waiver.
10. Relevant supporting documents, where available.

Keep the explanation factual and use only information that applies to your account. A waiver request should be treated as a request for review rather than an entitlement.

After a cheque or EMI payment bounces, check the reason for the failed payment, resolve any outstanding amount and separately request a review of the applicable charge where appropriate.

Follow these steps:

1. Check the return reason: Review the bank statement, cheque return information or loan account.
2. Confirm the outstanding amount: Identify the original payment that remains due separately from the applicable bounce charge.
3. Resolve the unpaid payment: Use an authorised payment method available for your account.
4. Keep payment records: Retain the return details, payment confirmation and relevant account records.
5. Submit the waiver request: Send the request through the concerned bank or lender’s authorised channel.
6. Check the account: Confirm that the payment has been reflected and review any remaining dues.

For a loan account, paying a bounce charge alone does not necessarily clear an unpaid EMI. Review the EMI and applicable charges separately and ensure that any outstanding amount is addressed.