Refer to Drawer (04-09) cheque return reasons

“Refer to Drawer” reason code no (04-09) will explain the exact reasons. First of all, we need to know all the reasons for the list of check return reasons. Refer to the drawer’s reason for cheque return happens most of the time in banking. So if it is happening again and again then we need to know the detail of the exact reason.

What is the meaning of Refer to Drawer?

Refer to Drawer means a cheque return reason and specified request by the bank to the drawee for contact to the Drawer for solving the issues. Normally, this reason tells us that there is no balance in the drawer’s bank account for clearing a presented cheque. There may be more reasons which are specified below:

What are the reasons for ‘refer to drawers’?

Some other specific reasons for this (refer to drawers 04 code)

  1. Insufficiency of funds
  2. Any specific restriction imposed on the cheque drawers from the bank.
  3. The bank has marked the cheque drawers for any pending documentation.
  4. and the incomplete requirement of banks by the drawers.
  5. The drawer doesn’t want to allow that payment.
  6. Sometimes, a cheque will be returned for technical reasons, irregular drawing, or some other reason, even though the balance is there to pass the cheque.
  7. And sometimes the bank does not want to destroy the reputation of the drawer in the view of the payee.
  8. Sometimes, a cheque will be returned for technical reasons irregular drawing, or some other reason.

04 Refer to Drawer

Refer to Drawer exact meaning is that there are insufficient funds in the drawer’s bank account. So due to a lack of funds issuing bank does not honor a cheque. And the cheque is returned to the payee bank with the reason “refer to drawer” meaning the cheque is dishonored. So please contact the issuer of a cheque for more details.

Now In this case as a payee, you should contact the issuer of the cheque and say to have a balance in the bank account to present the cheque again for clearing.

05 Kindly contact drawer/drawee bank and please present again

It can be easily understood from the reason because the reason is clear that you should contact the drawer of the cheque as a payee. And should clear the cheque return issue by discussing it with the drawer of the cheque.

After solving the issue, You should present the same cheque to the bank for the clearing if the drawer’s bank account has sufficient funds.

The list of cheque return reasons contains the ‘refer to Drawers’ code (04-09) but codes 04-05 are mostly seen which needs to understand and codes 06 to 09 are not mostly seen. In banking, there are so many issues related to cheque return reasons due to so many frauds happening. And there are so many court cases running in which a reason only cheque return due to the list of check return reasons.

What is “refer to drawer” in cheque return?

“Refer to drawer” in cheque return means that the cheque you have presented to your bank branch has not been cleared and you need to ask or refer to the drawer of the cheque. This many times happens when the drawer’s bank account has insufficient funds and the cheque bounces due to a shortage of balance.

What is ‘refer to drawer’ in Accounting?

“Refer to drawer” in accounting means that the cheque you have presented to your bank branch has not been cleared and you need to ask or refer to the drawer of the cheque to present that cheque in the bank again. But you will have to make a banking entry in your accounts because the bank will dishonor that cheque by crediting and debiting it in the bank statement with this reason “refer to drawer”.

Faqs on “Refer to drawer”

1. Who is the drawer for the ‘refer to drawer’ cheque return reason?

In this cheque return reason, the drawer means the person who made and signed the cheque.

2. When to use “refer to drawer”?

Many times banks use the word ” refer to drawers” as a cheque return reason when the presented cheque is not able to clear due to insufficient funds or any other one shown above.

3. What should we do when a cheque is bounced for a “refer to drawer” reason?

You should contact the drawer and should say to make sufficient balance in his bank account or allow the bank to overdraft if possible.

4. Refer to drawer 138 negotiable instrument act

It is an offense under Section 138 of the Negotiable Instruments Act, 1881 is committed no sooner a cheque drawn by the accused on an account being maintained by him in a bank for discharge of debt/liability is returned unpaid for insufficiency of funds or for the reason that the amount exceeds the arrangement.


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