Give any four reasons that may lead to dishonour of a cheque.

Why cheques are dishonoured

• Insufficient funds
• Post – dated cheque
• Stale cheque.
• Amount in words differ from amount in figures.
• Signature of the account holder may differ from the specimen in the bank
• Alterations that have not been signed against
• The drawer has stopped payment of the cheque.
• If any one of the requirements for a properly drawn cheque is missing or wrongly written.
• A crossed cheque will be dishonoured if the depositor does not abide by the conditions of the crossings